Renting Out Your Apple Valley Home To Buy Another

Many Apple Valley home sellers are challenged 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 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. Many home sellers who need to move now are considering the possibility of making their current home available to rent with the hope of buying a new house.

Apple Valley Home Sellers: Is Renting A Good Option?

The good news today is that with the tougher real estate market, rents have gone up 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 increased rents.

The goal, of course, is to rent the current 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 guidelines for the Apple Valley 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.

Get preapproved right away

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 a mortgage loan. Your MN mortgage lender can help you discover which of the options are best whether selling or renting out your current home. The process of preapproval is is usually free and contains no loan obligation. A good mortgage lender will be able to analyze all of the financing options available to you such as through MN FHA loans, Conventional, VA, or other types of mortgage financing.

Apple Valley: Community Overview

The city of Apple Valley, Minnesota was recently named in the top twenty of best places to live in America. With over 49,000 occupants, the community of Apple Valley has more than doubled its population over the last thirty years. Located in northern Dakota County, Apple Valley first time home buyers can enjoy the benefits from the Dakota County first time buyer program With a well-developed Parks and Rec department you'll never lack for something to do here. If you are looking to buy or sell Apple Valley real estate please do not hesitate to give me a call!

If you are considering renting out your current home, please 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