What To Do When Your Upside Down

Many Woodbury home sellers are faced with the unfortunate problem of owing more on their home than what they can sell it for. The fact is that in order for you to sell your house in the MN real estatemarket 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 table to pay off the remaining balance owed. As a result many home sellers who need to move are considering the possibility of making their current home available to rent with the hope of buying a new house.

Rising Rents in Woodbury

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 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 old home out long enough to allow the Minnesota 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.

Will rental income offset my mortgage payment when qualifying for a new mortgage?

Lenders have specific guidelines for those Woodbury sellers who have made the decision to rent out their house 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 prequalified for a home loan. Your mortgage lender can help you decide 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 banker will be able to analyze all of the options available to you such as MN FHA loans, VA, conventional, or other types of loans.

City of Woodbury MN

If you are searching for Woodbury real estate you'll find this to be one of the more prosperous communities in the metro. The community has risen in stature over the last 20 years and consistently ranks high in Money magazine's best cities to in which to live in the entire U.S. With a combination of excellent schools and stable economy, Woodbury, MN is an excellent place to raise your family. The system of parks, trails, and open spaces in Woodbury has been noted by its residents as one of the most important reasons they choose to live here. If your family is into sports be sure to check out the Bielenberg Sports Center with its indoor ice rinks and complex of baseball and soccer fields. Woodbury offers an excellent parks and recreation department with activities for all ages.

If you want to talk about renting out your current home, please take a moment to call or email me for more information.

Casey Anderson
Sales Executive, Licensed Realtor in Minnesota
IBR Realty
caseyanderson@ibrrealty.com
Cell 651-245-1820
Woodbury, MN 55125
With a focus on Woodbury homes for sale and surrounding communities.