Many Burnsville 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 the
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 may bring money to the closing table to pay off the remaining
balance owed. Many home sellers who need to move now are considering the
possibility of renting out their current home in order to buy a new one.
Rising Rents in
Burnsville
The good news today is that with the tougher housing market, the amount you
can get for rent has increased significantly. Renters find that they are
competing with each other to rent out a Burnsville home as their is a shortage
of quality rentals available today. Many people 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 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.
Do
lenders count the rental income on my old house?
Lenders have specific guidelines for those Burnsville sellers who have
decided rent out their home in order 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
for a mortgage
Once we meet to discuss the value of your old home 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 free, and if you decide not to
proceed, there is no obligation to borrow money. 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.
As the sixth largest city in the Twin Cities metropolitan area, Burnsville is a popular bedroom
community to both St. Paul, Minneapolis, and neighboring suburbs. While
experiencing an explosion in population from 1970 through 2000 to over 60,000
residents, Burnsville is now fairly well built-out and its total population has
stabilized over the past ten years according the 2010 census. Larger employers
in the community include Independent
School District 191, Fairview Ridges Hospital, as well as Pepsi Cola but
most homeowners work in the Twin Cities. Burnsville has plenty of homes for sale
both for the Minnesota
first time home buyer as well as the move up buyer.
If you want to talk about renting out your current home, please take a moment
to 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
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