ôô

How to Rent Your House and Buy Another One

Get 6 tips to buy a new home and keep the old one as a rental property.

By
Laura Adams, MBA,
Episode #268
house for rent

Tip #6: Get a Mortgage Preapproval

It’s never too early to meet with a lender for a free consultation about whether you can afford to buy a new home and keep the old one as a rental. Always get a mortgage preapproval before you start shopping for your first or second home.

Lenders can give you a preapproval letter after they review and verify your financial information. It shows the maximum amount you can borrow for a certain period of time. However, remember that you shouldn’t borrow the maximum amount if it would be a stretch for your budget and overall financial goals.

Not only does a mortgage preapproval help you shop for homes in the right price range, but it’s an excellent negotiating tool. A preapproved buyer is more attractive to a seller who might be willing to take a lower offer than a higher one that’s contingent upon financing. 

Once you confirm that you can turn your home into a rental, have a realistic expectation of its annual cost, and get preapproval to buy a second home, you’re on your way to becoming a real estate investor.

Here’s How to Get More Money Girl!

Click here to sign up for the free Money Girl Newsletter!

There’s a huge archive of past articles and podcasts if you type in what you want to learn about in the search bar at the top of the page. Here are all the many places you can connect with me, learn more about personal finance, and ask your money question:

Download FREE chapters of Money Girl’s Smart Moves to Grow Rich

To learn much more about smart ways to manage your money, get a copy of my book Money Girl’s Smart Moves to Grow Rich. It tells you what you need to know about money without bogging you down with what you don’t. It’s available at your favorite book store in print or as an e-book for your Kindle, Nook, iPad, PC, Mac, or smart phone. You can even download 2 free book chapters at SmartMovesToGrowRich.com!

More Articles and Resources You Might Like:

What Is the Best Type of Mortgage?

Legal Forms for Real Estate

Credit Score Survival Kit – a free multimedia resource to raise your credit score!
EasyLoanSite – the best new mortgage and refinance offers in one place

Investment Property Calculator

 

Pages

The Quick and Dirty Tips Privacy Notice has been updated to explain how we use cookies, which you accept by continuing to use this website. To withdraw your consent, see Your Choices.