Many of us have dreamt of having a vacation home. It could be on the beach on Lopez Island or a bluff in the San Juans, or even cabin east of the Cascades. Many consumers don’t realize that with the proper research, their dream vacation home might actually be in reach. Instead of visualizing how relaxing vacations and weekend getaways could be, why not consider making your second home a reality?
The first step to purchasing a second home is organizing your finances to make sure you can afford it without compromising the security of your other assets.
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Figure out what you can reasonably afford by looking closely at your income, savings, and spending habits. Future expenses need to be factored into your budget, such as the likelihood of replacing a car or adding to your family.
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Check each of your three credit reports well before you start looking at houses or shopping for lenders. If your credit score needs improvement contact a credit counseling agency or ask your mortgage company for advice.
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Create a budget. A budget not only clarifies your current financial situation, but it also helps you identify places where you might cut back to save for a down payment.
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Consider tax implications. Purchasing a second home has its benefits, but you should make sure you consider funds for property taxes on the second home as well as additional income tax if your home will be rented out. You should research the area’s property taxes because some locations have significantly higher or lower property taxes.
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Let’s talk and see what is out there that suits your dreams and needs.
For some, now is the perfect time to make a move on your vacation home or even the home you’ll end up retiring in.
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