Buying
a vacation home--that haven away from it all--is an enticing
thought, but the process is subject to the same practical
considerations as any other financial decision you may make.
Know what you're looking for, shop aggressively and pay attention
to the numbers to ensure you walk away with the best deal
possible.
1. Look where you've vacationed before, or if you're looking
in a new geographic region, rent a home for a season to make
sure you love it.
2. Get preapproved for a mortgage. This is a critical step,
particularly if you already have a home loan and will add
to your debt level. Depending on what you owe on your primary
residence, you may be limited by what a lender is willing
to give you for a vacation home mortgage. Alternatively, look
into refinancing your primary residence at a lower rate for
cash to buy a second home.
3. Is proximity to water important? As a rule, the closer
you are to desirable attractions of a given area, the more
you're going to pay for that convenience.
4. Interview several local real estate agents
before selecting one. Ask how many vacation home listings
they have, how many years they've worked in the business,
and whether they have a particular specialty. Make sure you're
comfortable trusting the person you choose with your search.
5. View various homes in different settings. Get a sense of
how location, size of the homes and other factors affect price
differences.
6. Consider ongoing maintenance. How will you keep the house
up if you're not there all the time, particularly if it's
subject to a wide variety of weather conditions? Factor in
the cost of hiring a local individual or service to look after
the property in your absence.
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