Rent Out Your Bloomington Home To Move

Many Bloomington home sellers are faced with the problem of being "upside-down" on their mortgages. The fact is that in order to sell your home in this market today you need to pay off your mortgage in order to convey clean title to your buyer. Unless you want to arrange a "short sale" with your mortgage lender, this means you will have to bring money to the closing table to pay off the remaining mortgage owed. As a result many home sellers in Bloomington who want to move are considering the possibility of renting out their current home in order to buy a new one.
 
The good news today is that with the tougher real estate market, rents have increased 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 home sellers 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 the current home out long enough to allow the Bloomington 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 Bloomington 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 have a chance to meet to discuss the value of your current home it is important that you go through the process of getting preapproved for mortgage financing on another home. Your mortgage lender can help you decide which of the options are best whether renting or selling your current house. The process of mortgage 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 through MN FHA loans, Conventional, VA, or other types of mortgage financing.

The Community of Bloomington, MN

The City of Bloomington, MN is the 5th largest city in MN and is situated within the boundaries of Hennepin County Bloomington's residential neighborhoods include upper-tier households in the Bush Lake area as well as traditional middle-class families in its rows of single-family homes in the central to eastern portions With a stable economy, Bloomington actually has more jobs per capita than either Minneapolis or St. Paul. Major employers in Bloomington such as Toro, Ceridian, Donaldson Company and Health Partners are all headquarted in Bloomington. With an extensive Park and Rec department it seems there is always something to do in Bloomington, Minnesota!

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




Robert Phyle,CSP,GRI,RSA
Broker Associate, Realtor
Coldwell Banker Burnet
rlphyle@cbburnet.com
Cell 612-801-4657
Direct 952-997-1955
Fax 952-432-8372
7741 147th St W.
Apple Valley, MN 55124
www.facebook.com/robphylerealestate
Visit my website to find Minnesota homes for sale