If you've ever dreamed of purchasing investment property, owning a vacation home or buying a home in Santa Cruz 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 Florida or a home in Santa Cruz 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 Santa Cruz is on your bucket list, give me a call today at 831.662.6522 or email me at Lauren@LaurenSpencer.com.
For additional information please visit www.MySantaCruzRealEstate.com.