Many home sellers in Richfield are faced
with the problem of owing more on their home loans than what their
property is worth in today's market. The fact is that in order to sell
your home in the MN real estate
market today you need to pay off the entire mortgage in order to sell
the home. Unless you want to arrange a "short sale" with your mortgage
lender, this means you will bring money to the closing in order to pay
off the remaining balance that you owe. As a result many home sellers
in Richfield who want to move are considering the possibility of putting
their current home for rent in order to buy a new one.
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 real
shortage of 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
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 for those Richfield 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
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.
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 mortgage broker can help you decide which of the options are best
whether renting or selling your current house. The process of getting
preapproved is is usually 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.