Thinking about buying a vacation home? Now is a good time to buy. Interest rates are still low and home prices are affordable. Let’s take a look at some things you should consider before starting your search.
Take stock of your finances. Ask yourself… do you plan to tap the equity in your home? And do you have a cash reserve to cover both normal and unexpected expenses related to the vacation home?
Get pre-qualified for long term mortgage financing. The loan process is similar to that of your primary residence. A down-payment of at least 20% is typically required.
Research the desired location. Talk to people in the area to learn more about what the area has to offer and why they chose to live there.
Decide on the type of second home you want. Is it in keeping with your lifestyle? Are you interested in renting it out to others when you aren’t using it?
If the property is on the water it may require flood insurance in addition to homeowners insurance so be sure to check to make sure you are covered.
Also, make sure to use a REALTOR® who specializes in vacation homes. The REALTOR® who provided you with this video can help connect you with the right REALTOR® in your desired area.
Generally speaking, buying a vacation home is a lifestyle decision for people who plan to use it to have an escape from everyday life. And those family vacations… priceless!