Many Maple Grove 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 MN real estate 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 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.
Benefits of Rising Rents in Maple Grove
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 Maple Grove home as their is a shortage of quality rentals available today. Many home sellers 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 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 specific guidelines for those Maple Grove 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 meet to discuss the value of your old home it is critical that you go through the process of getting preapproved for mortgage financing on another home. Your mortgage broker can help you decide which of the options are best whether selling or renting out your current home. The process of getting preapproved is is usually free and contains no loan obligation. A good lender will be able to examine all of the options available to you such as MN FHA loans, VA, conventional, or other types of loans.
Community Info for Maple Grove
The City of Maple Grove is a booming suburb of the Twin Cities and has more than tripled its size since the 1980 2008 census to now over 60,000. Situated squarely in north-central Hennepin County the major employer in Maple Grove is Boston Scientific. One of the largest shopping centers in the Twin Cities is located here known as The Shoppes at Arbor Lakes. A beautiful community, Maple Grove has over 35 miles of trails and 1000 acres of parkland. If you are considering buying or selling Maple Grove real estate please feel free to give me a call or send me an email.
If you want to talk about renting out your current home, please take a moment to call or email me for more information.
Sales Executive, Licensed Realtor in Minnesota
Woodbury, MN 55125
With a focus on Woodbury real estate and surrounding communities