Buying a Vacation Home
Taking a vacation during the summer may get you wishing you could have a home of your own in your favorite travel destination. With interest rates still low, it may be the perfect time to buy that vacation home you’ve been dreaming of. Before starting your search, here are a few things you should consider:
Review your finances. Ask yourself, do you plan to tap the equity in your home? And do you have a cash reserve to cover both the normal and unexpected expenses that come along with home ownership?
Get pre-qualified for long-term mortgage financing. The loan process is similar to that of your primary residence. Having that experience may help you feel more comfortable when applying for a vacation home loan. A down payment of at least 20% is typically required, so be sure you are financially prepared for the purchase.
Research the location you are looking to buy in and talk to people in the area to learn more about what the area has to offer and why they chose to live there. The home values in your vacation spot may be very different than the homes around your primary residence. Analyze these home values and understand what your budget will buy you. Doing this before you start your search will better prepare you for what to expect.
Choose the type of second home you want. Are you looking for a single family home with more privacy? Or a resort-style condo with lots of amenities? Consider the type of lifestyle you live while you are on vacation. Is it different than when you are at home? If you will want to spend a majority of your time at the vacation home you will want to focus your search on what the actual property offers, whereas, if you will mostly be out exploring the area, perhaps location should be the top priority. It is also important to consider what you want to do with the home when you are not using it. Will you need to hire someone to maintain things like landscaping? Are you interested in renting it out to others? Talk to your REALTOR® about typical rentals in the area to see if this option makes sense for you.
Make sure you use a REALTOR® who specializes in vacation properties. If you are looking to purchase a second home, contact your Semonin Realtors! We can connect you with the right REALTOR® in your desired area!