Looking to buy a new house and rent out old house?

How do you go about getting a new mortgage when you are planning on renting out your old house? Does the renter have to be in place before you get the new mortgage? What if the rent does not quite cover the mortgage payment? I am just looking at options, as my husband has accepted a job in a different state. We need to sell our current home, but with the market the way it is, that may be impossible. What if we rent out the old home? I just don't know how this all works...can someone help me?Looking to buy a new house and rent out old house?
If you can't sell your current home, look at the numbers for refinancing it. You may be able to lower your monthly carrying costs to the point where you can break even or make money on it. Call two or three mortgage brokers and discuss your options.





Also, keep in mind that anything you do to get your home ready to rent, as well as to put it back into shape after you rent it out, has tax implications. (Read: deductions.) Talk to your tax adviser.





Depending on what your income will be, and how much of it will go to pay your existing mortgage, you still may be able to purchase a new home. Again, talk to a mortgage broker. Ask them all the questions you mentioned above. And don't feel as though you should know the answers to these questions - very few do.Looking to buy a new house and rent out old house?
First, you have to apply for the new mortgage. When you apply, if you do not have a lease signed for the rental, you cannot use it as income. So you have to be able to afford both payments and have them not exceep 36-45% of your income.





If you do have a lease signed, it has to be for at least 3 years or you cannot use the rent as income either. Income from a source other than payroll has to have a continuance for 3 years.





Renting the other property is a good idea with the market the way it is. But keep in mind that even if a lease is signed, the renter may not pay. Just maker sure that you can actually afford both mortgages or you could be in serious trouble if your renter defaults or if there is a gap between renters.