If you’ve ever dreamed of purchasing investment property, owning a vacation home or buying a home in Nevada County for a family member, this could be the year to check that off your bucket 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 of another mortgage, be it for a beach condo in Floridaor a home in Nevada County 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 cheaper to rent that ski villa or 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 Grass Valley or Nevada City is on your bucket list, give me a call today at Grass Valley or Nevada City or email me at Teresaprock@hotmail.com

 

Keyword: home in Grass Valley or Nevada City

 

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

 

Ski villa

http://www.forbes.com/2007/12/14/ski-world-property-forbeslife-cx_mw_1214realestate_slide.html