Many home sellers in Afton are faced with the unfortunate problem of owing more
on their home than what they can sell it for. The fact is that in order to sell
your property in the Minnesota real estate market you need
to be able to pay off your entire mortgage loan in order to sell it. Unless you
want to arrange with your lender sell your home on a short sale, this means you
will bring money to the closing table to pay off the remaining balance owed. As
a result many home sellers in Afton who want to move are considering the
possibility of making their current home available to rent with the hope of
buying a new house.
Afton Home Sellers: Can You Cover Your Expenses?
The good news today is that with the tougher mortgage market, the amount you
can get for rent has increased significantly. Renters find that they are
competing with each other to rent out your home as their is a shortage of
quality rentals available today. Many home sellers in this position are finding
that they can more than cover the expenses for retaining the home with these
The goal, of course, is to rent the old home out 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.
Will rental income offset my mortgage payment when qualifying for
a new mortgage?
Lenders have specific guidelines to follow for those Afton home sellers who
have made the decision to rent out their house 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 the value of your old home it is critical that you go
through the process of getting prequalified for a home loan. Your mortgage
lender can help you decide which of the options are best whether selling or
renting out your current home. The process of preapproval is generally free and
contains no loan obligation. A good mortgage banker will be able to analyze all
of the options available to you such as MN FHA
loans, Conventional, VA, or other types of mortgage loans.
If you are looking for a true small town atmosphere in the Twin Cities area,
you'll find your home in Afton, MN. With a
population just under 3,000, you'll love the quaint main street in downtown
Afton. This small town receives a fair amount of day-trip visitors year round
due to being home of Afton State Park as well as Afton Alps, the largest ski area in the
metro. Conveniently located in Washington County, Afton is a 20-25 minute
commute from downtown St. Paul. If you're looking to buy or sell in Afton, MN,
please give me a call.
If you want to talk about renting out your current home, please email me for
Scott Schultz www.scottschultz.remax-northcentral.com
Sales Executive, Licensed Realtor in Minnesota
14451 Founders Lane
Valley, MN 55124
With a focus on Apple Valley real
estate and surrounding communities.