If you’re thinking about buying a second home, you might not know it’s a little different than buying your primary home. While all the basics are the same, when selecting a new property, there are some things to keep in mind. Here are four steps to buy a second home without headaches in Terre Haute.
Set Your Budget
This is the main first step in purchasing a second home in Terre Haute because you need to know how much money you’re dealing with.
If you still owe your primary residence money, make sure you don’t stick to the traditional advice to use your income and expenses and determine how much home you can afford. Alternatively, the burden of owning both properties and holding two different mortgages must be completely factored.
Which means you need to make sure you’re comfortable paying which amount every month irrespective of the price point you set, as well as taxes, maintenance, insurance and services, as well as any other improvements and fees you may need to pay.
Another thing to remember is that most lenders will require you to pay as an down payment 20 percent of the purchase price, which means you have to make significant savings before you start looking.
Choose a Location
As the old adage goes, “place, place, location” is crucial to the selection of properties.
Within Terre Haute], the location you can afford will be largely determined by the amount you are willing to spend on buying a second home. For example, if you want to buy in a more expensive neighborhood, but don’t feel comfortable paying for property at the current market rate, you might need to consider a different location.
If it turns out you initially wanted to buy a home in the community is out of your price range, start thinking about what you need and want in a neighborhood.
Would you like to be close to facilities like a gym or the beach? Should it be walkable or on public transport routes? Are you in a gated community or other kind of neighborhood dead-set?
Rate these desires and needs as relevant as possible and use them to help you find a place that suits your needs and is within your price range.
Hire a Local Agent
Even if you feel that you are well acquainted with the area, nothing beats having someone whose job is to know the ins and outs of the real estate market of an area to help you buy a second home.
This is particularly helpful if you live far away from Terre Haute because without you being there, the agent can keep an eye on available properties and pre-screen homes.
A real estate agent’s job is to fully understand the area they are working in, so your real estate agent can help you determine a reasonable budget, choose a neighborhood, find available properties, and more. You can also get some key insight into what living in Terre Haute is really like, making it easier to find grocery stores, movie theaters, and more.
Getting a letter in hand that says how much money you are allowed to borrow will make it much easier to buy a second home.
Meet with your lender to receive pre-approval for a mortgage once you have a budget in mind. We can provide you with a letter of pre-approval that you can send to your real estate agent and any vendors.
This declaration is a good-faith indication that you can afford the mortgage on a property you’ve chosen, offering more peace of mind to the sellers to consider your bid over someone else’s.