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With housing prices falling, we are looking to move to a nicer neighborhood. Trouble is, we will probably have a hard time selling our present house, so we are thinking of hanging onto it and renting it out. Anyone know how this would affect applying for a mortgage for the new house?
I own several rentals, and the best advice I can give, have a good contract, and always do a credit check. I even look inside their car when they come to view the house to see how clean they are. You want someone in there that is going to take care of the place. As far as your mortgage, your down payment would most likely be 20% down instead of the normal 10% down, but this isn't true with all banks.
Im not sure how the real estate is over there...but in Lake Tahoe, CA its nearly impossible to sell right now with the market the way it is. Im not sure how it would effect applying for a mortgage...but if the market is anything like it is here I would recommend holdin on to it
I don't think it will affect your mortage at all. I used the rent from the house I owned to help make my mortgage payment.