Are you Ready to Buy a Second Home?

Only the rich and famous by a second home, right? Wrong, a second home can be a smart investment. If carefully thought out, it can be affordable and not as “risky” as it appears to be. Let’s take a look at some of the criteria you need to consider and get in order to determine if you are ready and able to purchase a second home. TheBalance.com shared 5 Easy Steps to Buy a Second Home. Those steps are broken down below.

Step 1: Determine Your Location

Do you have a favorite vacation spot that you visit each year? Maybe that’s the location you need to consider for your next home. Decide if you want to return your investment by making it a vacation rental property. Is there an easy weekend spot that you’ve always wanted to spend time at? Or it could be that you are ready to split the year between warm and winter weather locations. Whichever the desire, ensure it’s a spot that you’ll love and are ready to invest in a home there.

Step 2: Determine Type of Home

What kind of home are you looking to buy? Do you want the opposite of your current home? Are you ready for the quiet country, ocean views, low maintenance condos, cityscape high rises…the list could go on. What’s important is the kind of home you envision when you say, I’m ready for a second home.

Step 3: Determine Your Sales Price

Just because you are purchasing a second home doesn’t mean you have endless funds to back this decision. Get your finances in order and find a comfortable budget range that will allow you to pursue this dream while staying safe within your realistic limits. This could also help decide the location you are able to purchase in. Some areas will be more expensive than others, therefore may need to be eliminated from the options.

Step 4: Find a Realtor

This step could easily be checked off in the beginning stages for you if you are ready to move forward. Give me a call!

Step 5: Secure a Preapproval Letter 

“You will fare better with your offer if you use a lender the seller and listing agent are familiar with. You may want to use your own lender back home, but your preferred lender might not lend in that area. And, if an unknown mortgage lender will hurt your chances when submitting an offer, why take that chance”