The good news today is that with the tougher housing market, rents have increased significantly. It is not uncommon to find renters competing with each other to rent out your home as their is a shortage of quality home rentals available today. Many people are finding that they can more than cover the expenses for owning the home with the increased amount of rents.
The goal, of course, is to rent out the current home long enough to allow the real estate market to recover in terms of values. Hopefully within a few years the value of your rental home will rise sufficiently to sell it for enough to pay off the mortgage. The key to accomplishing this is to see if you will qualify for a new mortgage if you have rented out your current home.
Lenders have specific guidelines to follow for those West St. Paul home sellers who will rent out their home to buy another. Depending on the equity that you have in your home, a mortgage lender may or may not consider the rental income you receive when they qualify you for the new mortgage. The only way to know this is to call a lender to get preapproved.
Once we meet to discuss your home's current market value it is critical that you go through the process of getting preapproved for a mortgage loan. Your mortgage broker can help you decide which of the options are best whether renting or selling your current house. The process of mortgage preapproval is is usually free and contains no loan obligation. A good mortgage lender will be able to analyze all of the financing options available to you such as through MN FHA loans, Conventional, VA, or other types of mortgage financing.
The city of West Saint Paul is located just south of the state capitol of Minnesota, Saint Paul. The city name is actually derived from the fact that it is on the west bank of the Mississippi River. As a fully developed inner ring suburb of St. Paul, the population of West St. Paul has remained stable at about 19,500 over the past 20 years. Located in Dakota County, Minnesota first time home buyers can benefit from the Dakota County First Time Hom Buyer's Program. If you're interested in buying or selling a home in West Saint Paul please don't hesitate to give me a call.
If you are considering renting out your current home, please take a moment to call or email me for more information.
Sales Executive, Licensed Realtor in Minnesota
14451 Founders Lane
Apple Valley, MN 55124
With a focus on Apple Valley real estate and surrounding communities.