After owning your first home, you may desire to have a second, and for a good reason. You may want a place to retire. Or maybe you want to have a place to go during the holidays instead of staying in a hotel. Further still, perhaps you have the desire to purchase property to add to your assets. However, owning a vacation home means more responsibility and expenses. You will also realize that buying a second home, the rules differ from buying a primary residence.
Get to find some critical questions you need to ask yourself before seeking to get a vacation home mortgage approval.
1) Is It Affordable?
You may still be paying for your primary residence by the time you are searching for a second home. In case of a financial crisis, the priorities may change, and you may have to focus on clearing the mortgage on the first home. There are extra expenses that you will still incur, including property taxes and closing costs.
If you have not cleared your mortgage on the first house, the down payment, homeowner’s insurance, and mortgage interest rates will be higher for you. In case you have cleared your first home’s mortgage, then the situations may be different though the rules are still not the same when you go searching for a vacation home. Therefore, it will be prudent of you to seek the services of an experienced mortgage broker like Altrua Financial, who will assist you during the entire process.
You will get expert advice on where to get the best rates that suit your mortgage needs. The expert will ask you questions to understand your budget and offer you options to suit your situation. Your finances, goals, and needs when acquiring real estate will keep changing; as such, you will need an experienced mortgage adviser.
2) Where Is It Located?
The location of your vacation home is important to consider. You do not want it so near your first home that you do not feel like you went away from your usual environment when you go on vacation. On the other hand, it does not have to be miles away that you rarely visit.
You will have to consider the distance not to incur any travel expenses when you go on holiday. If you are to meet up with other family members, the home should be in a central place that is convenient for them. You may also want to consider the area’s attraction sites so that you can have some fun moments when you visit.
The climate of the area you want the home to be in is also crucial. If the conditions do not favor you when you are not on vacation, you may have to reconsider.
3) How Much Does The Maintenance Cost?
Your second home will most likely be vacant for the better part of the year. Therefore, you will need to get someone who will be maintaining the lawn or repairing any damages. You will need to decide if you will be paying for utilities actively or have them shut off until when you are around.
Owning a vacation home is an added responsibility, and you will have to determine how you will manage to pay for it and take care of the two properties. Since you will not be around, you may have to look for a way to keep the home secured to avoid the premise getting damaged.
I’m a 20-something stay-at-home mother and wife. I have an amazing husband, a beautiful daughter, two loving dogs, and a lazy cat. I wouldn’t change my life for anything! I love to read, listen to music, cook and blog!
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