Buying a Vacation Home : Getting Familiar With The Steps
You take pride and joy in your primary residence, but you're ready to take on another investment. A vacation home is a dream of many homeowners as they gain more wealth through life. This purchase has some distinct differences from the primary residence, however. As you shop for home loans in Colorado Springs, become familiar with the steps that lead to a vacation-home purchase.
Scout Out the Location
Before you focus on a particular property, evaluating the neighborhood must be a priority. If your vacation home isn't centered in an attractive area, you won't want to visit it very often. Select a region that you've visited on a regular basis. You already know the immediate area to a certain degree. Narrow down your property choices from that point forward. Picking a random region may result in an unhappy situation.
Add up the Real Costs
Be aware that a vacation home is just as needy as your primary residence. Basic maintenance will cost a certain amount, from painting the interior to repairing the plumbing. Examine the property-tax costs, HOA fees and other investments in the property. You may think you're receiving a good deal, but the mortgage's principal and interest are just the start of the costs. Your real-estate agent can quantify these costs so that you have the bigger picture written out for you.
Consider Rental Income
It's impossible to be on a perpetual vacation. Think about tenants for the vacation home when you aren't planning on visiting. Your listing might be for a week at a time or try monthly payments. Ideally, the rental income should cover your mortgage amount. For many investors, they have a profit off of the rental amount. Take care of your tenants so that they can be consistent visitors to your property. As they return home, enjoy your vacation home during your time off.
Secure the Site
If you don't have regular renters, be proactive about your security. The home must have insurance, but also look into security systems. Watch the property from your primary residence by using the latest technology. Cameras linked into your WiFi or Internet connection make monitoring an easy thing to do. Safeguarding the property when you aren't visiting saves you money in the long run.
Find an agency that has experienced personnel in regards to vacation homes. They can also explain the financing options that are unique to vacation properties. The tax implications may also be different for your case. Ask as many questions as you need to when it comes to financing. Your vacation home should ultimately make you money instead of driving you more into debt. A solid mortgage company can help you through the contractual process.
Explore your Colorado Springs home loan options with Ryan Nash at Equity Edge Mortgage. Our brokerage specializes in lending options for primary and secondary homes. Discover that dream home, bid on it and start a new life with the help of professionals on your side. The real-estate market can be a simple place with the right partner.