The good news today is that with the tougher mortgage market, rents have gone up significantly. Renters find that they are 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 retaining the home with these higher rents available.
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.
Lenders have specific guidelines to follow for those Hastings 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 your home's current market value it is critical that you go through the process of getting prequalified for a home loan. Your MN mortgage lender can help you discover whether you should rent out or sell your current house. The process of getting preapproved 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, VA, conventional, or other types of loans.
Looking for a small town feel in a Twin Cities bedroom community? You will want to check out the benefits of living in Hastings, MN. With just a 30 minute commute to downtown St. Paul, Hastings offers its residents both the benefits of a small town as well as big city living. Situated in Dakota county, Minnesota first time home buyers might benefit from the Dakota County first time home buyers program. If you are looking to buy or sell a home in Hastings, please call me.
If you are considering renting out your current home, please email me for more information.
Sales Executive, Licensed Realtor in Minnesota
Woodbury, MN 55125
With a focus on Woodbury real estate and surrounding communities.