Second-home purchases have increased over the past few years, as low interest rates have made vacation and investment properties more affordable. If you are thinking of purchasing a second home, here are some tips to help you with the practical aspects:
Neighborhood
Is the location desirable and close to amenities you need? Consider how long you plan to keep the property, and how well it will suit your needs as they change with time. If possible, spend some time in the community before you purchase.
Financing
Financing a second-home purchase may be tougher than buying a first home. Lenders may require a larger down payment and charge as much as a half-point more in interest than for a primary home. One way to keep costs down is to use a home equity loan on your primary home to help finance your second property.
Home equity loans typically carry a lower interest rate than conventional mortgages, and some lenders may loan you up to 125 percent of the appraised value of your home, less existing mortgages.
Home Inspection
Don't purchase a second home without having a qualified home inspector look over it. In some vacation areas, termites, carpenter ants, rodents, mildew, leaky roofs, inadequate septic systems and burst pipes from winter freezes are major concerns.
Security and Maintenance
Since you are likely to be away for long stretches of time, you should take extra security measures. Enlist a caretaker to keep an eye on the place and take care of routine maintenance jobs. An alarm system is a good idea as well.
For more information on buying a second home, visit http://www.lendingtree.com/cec/yourhome/buying/second-home-shopping-tips.asp
Content Provider: http://www.my-articles.com
More About LendingTree Editorial Staff: The editorial staff at LendingTree is committed to helping consumers become smarter borrowers. Visit www.lendingtree.com/cec for more information and tips on buying, selling, and financing a home. Copyright 1998-2006, LendingTree, LLC. |
