Home Away From Home: Tips for Buying a Vacation Property
You love your home and the surrounding city but sometimes it’s nice to get away. Especially with the seasons changing – depending on where you live you may be seeking tropical climates or conversely – a winter wonderland. Short weekend trips or a week out of town is exciting, but if you’re looking for a long-term adventure – a vacation home is the perfect solution! Here are tips on how to purchase your dream home away from home.
Crunch the Numbers
Your main home is definitely an expenditure and a life changing purchase within itself. It is not a small feat to save up for your first place and to stay on top of all the fees associated with upkeep. If you’re looking for a second residence for leisure – it’s important to consider whether you can afford it. The truth is that you will be taking on an additional mortgage – and will also go through the lending process again. Before taking on this next project, it’s smart to consider debt, your credit score, incidentals and also how well you’re doing financially with only one property!
If you think that you’re in a good position to move forward, the next step is to find the right mortgage package for this new home. Depending on the size and location of your dream getaway spot – your downpayment and leasing terms may vary. It is best not to guestimate or compare the cost of the new place with your current residence. At Minute Mortgage we help make the process easy and clear – our experts will guide you through crucial details. We set you up with an agent who will outline your mortgage options and present a course of action that fits your needs.
Create A Schedule
How often you intend to utilize your vacation home could potentially influence your decision making during the buying process. If you want a place to visit for a few weeks or a month on a seasonal basis you may opt for a less expensive home and choose a simpler mortgage package. On the other hand, if you want the property to serve as part-time residence then you will likely need to rework your savings plan and other financial allocations. Also, the need for upkeep is influenced by frequency of use. If your stops are infrequent, you can usually avoid extensive repairs, maintenance and neighborhood fees.
Co-Buyers Can Help
After you’ve decided to move forward, select a mortgage package and property location – it’s time to finalize the process! If you feel confident financially, but would like to be extra cautious – a co-borrower can create a buffer. A co-signer will share the responsibility of financing the new place, which gives you leeway to put money in other places. Also, when considering joint ownership – you create additional mortgage options when working with lenders. Contact us to discuss how co-lending works, and how it affects the interest rate and type of mortgage that you’re offered.