Many home sellers in Hastings are faced with the problem of owing more on their home loans than what their property is worth in today's market. The fact is that in order to sell your property in the Minnesota real estate market today you need to pay off the entire mortgage in order to sell the home. 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 who need to move are considering the possibility of renting out their current home in order to buy a new one.

Hastings Home Sellers: Can You Cover Your Expenses?

The good news today is that with the tougher housing market, the amount you can get for rent has increased significantly. It is not uncommon to find renters competing with each other to rent out your home as their is a shortage of quality 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 out the current home long enough to allow the Hastings 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 Hastings 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.

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 mortgage lender can help you decide whether you should rent out or sell your current house. The process of mortgage preapproval 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.

Benefits of Living in Hastings

Looking for a small town feel in a Twin Cities bedroom community? You will want to check out the benefits of living in Hastings, MN. With just a 30 minute commute to downtown St. Paul, Hastings offers its residents both the benefits of a small town as well as big city living. Situated in Dakota county, Minnesota first time home buyers might benefit from the Dakota County first time home buyers program. If you are looking to buy or sell a home in Hastings, please call me.

If you would like to discuss the reality of renting out your current home, please 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 real estate and surrounding communities.