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Shawn Hartmann's Blog

By Shawn Korby of Korby Home Team | Agent in Saint Paul, MN

Richfield Home Sellers: Want To Rent Out Your Home?

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.

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 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 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.

Getting 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 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.

The Community of Como Park

The Como Park neighborhood is situated in the northwestern part of Saint Paul along the northern city limits. It is bounded by the communities of Falcon Heights and Roseville on the west and north. Nearly 2 million visitors are attracted to the Como Zoo and Conservatory every year. With plenty of affordable Como Park homes for sale, this is a great location for Minnesota first time home buyers.

If you are considering renting out your current home, please call or email me for more information.

Shawn Hartmann 
Licensed Realtor in Minnesota
Keller Williams Realty
shawn@hartmannteam.com
Direct 651-468-9099
2680 E Snelling Drive North
Roseville, MN 55113
With a focus on Saint Paul Homes for Sale

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