Many Plymouth home sellers 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 your mortgage in order to convey clean title to your buyer. Unless you want to arrange with your lender sell your home on a short sale, 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.
Plymouth Home Sellers: Is Renting A Good Option?
The good news today is that with the tougher mortgage market, rents have gone up significantly. Renters find that they are competing with each other to rent out your 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 owning the home with the increased amount of rents.
The goal, of course, is to rent the current home out long enough to allow the Plymouth 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 to follow for those Plymouth home 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 a mortgage loan. Your MN mortgage lender can help you discover which of the options are best whether renting or selling your current house. The process of mortgage preapproval is free, and if you decide not to proceed, there is no obligation to borrow money. A good mortgage banker will be able to analyze all of the options available to you such as through MN FHA loans, Conventional, VA, or other types of mortgage financing.
Plymouth, MN Information
If you are planning to buy a home, the City of Plymouth, MN is an excellent Twin Cities suburb to consider. As Minnesota's 7th largest city, Plymouth is located just fifteen miles from downtown Minneapolis and is situated within Hennepin County. But don't just take it from me, Plymouth was ranked by Money magazine as the 11th best place to live in the United States. The city has fifty-three fine parks, an elaborate trail system, and plenty to do for everyone with its well-established recreation programs. Whether you are looking for a first home or your next home, let's get out and search for some great Plymouth real estate.
If you would like to discuss the reality of 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.