If you've ever dreamed of purchasing investment property, owning a vacation home or buying a home or condo in Lakewood Ranch, this could be the year to check that off your list. With record low interest rates and decreased prices, it is a buyer’s market, particularly in the second-home market.
Before you sign on the dotted line for a mortgage, be it for a condo or a home in Lakewood Ranch that you plan to rent, be sure to:
• Check your credit. The same rules apply for a getting a mortgage on a second home as on a first. Good credit means better loan terms.
• Save for a down payment. The more money you can put down, the lower your mortgage. If you put 20% down, you can save money by avoiding Private Mortgage Insurance (PMI) requirements
• Check your budget. It may be more economical to rent that palm tree paradise for a month than pay a mortgage year round. Consider what you really want in a second home, and what you are willing to pay for that.
• Check your time. Choose a second home carefully and make sure that you will really use it, or can rent it when you are not using it. There is no sense paying for a second home that remains shuttered and locked.
Once you consider the basics of your situation, you can begin looking for a second home with the confidence that you can afford the time and expense it requires. Your second home could be just around the corner – or palm tree.
If buying a second home in Lakewood Ranch is on your to do list, give Lakewood Ranch Realtor® Ellen Ferber Evans at 941-773-6907 or Alan Evans at 941-773-6906 a call today or email us at alan@lakewoodranchareahomes.com.
REMAX Alliance Group. 5411 University Parkway, Sarasota, FL 34201.
Links:
Good credit
http://www.suzeorman.com/igsbase/igstemplate.cfm?SRC=MD012&SRCN=aoedetails&GnavID=84&SnavID=20&TnavID=&AreasofExpertiseID=20
Private Mortgage Insurance
http://www.bankrate.com/finance/mortgages/the-basics-of-private-mortgage-insurance-pmi.aspx
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