The current housing market has created some challenges for those looking to sell their homes. This has led to some homeowners renting their current home and purchasing a new one, but you should be wary of renting your home until you consider all of the details.
It can be difficult to find trustworthy renters and you should take into consideration potential property damage which could occur while your home is being rented. Carefully consider factors such as the amount of a deposit as well as a pet policy to limit your out of pocket expenses. Also take into consideration that you will still be responsible for ongoing maintenance to your property, which your tenants will expect you to complete in a quick manner.
Once you have decided to rent out your home, there is no difference in the qualifications you will need for your new mortgage. Your existing mortgage will still impact your debt to income ratio however, which may limit the amount of home you can afford to purchase. Remember that you will still need to meet both financial obligations, whether you have a renter for your first property, or not.
If you can meet the financial obligations, renting your home and purchasing a new home can be a very lucrative opportunity. With an excellent buyers’ market, buying a new home now and selling your current home when the market recovers could save you thousands of dollars.
