Thinking of buying a second home? Whether you are looking for a place to retire, use for vacations, or rent out for extra income, you will need to first determine if it makes sense for you to buy now. Here are some ways to determine if a second home matches your goals and financial situation:
- Write down your goals
You will need disposable income to afford a second house payment. For what purpose do you want a second home? Do you future goals line up with a second home investment? Are you seeking a home that is located in an active community, has luxury amenities, or has other adults 55 and older? How often do you plan to go? Does the number of times each year match up with the investment?
- See what you can afford
When buying a second home, prepare to pay a higher interest rate than you are paying on your primary home. Look at your financial profile and determine your debt-to-income ratio, credit score, money that you can set aside for a down payment, among others. Determine what home price will match your affordability with a mortgage calculator. Once you have an idea of your credit standing, meet with a lender to see if you can qualify to buy a second home.
If you are ready to begin looking at vacation homes or investment properties, please contact us to learn more about buying a home in the Naples Metro area. If you are interested in a property management company, click to learn more.