How Do I Buy a Second Home?

Once you’ve paid off your first home, you might be interested in investing in a second property as a vacation home, a rental, or a permanent home. If you want to know how to buy a second home, here’s a quick breakdown of how the process works.

Find an Agent

Like any real estate purchase, buying a second home starts with finding the right agent. Your real estate agent can walk you through how to buy a second home, which may include helping you find a suitable loan for your second home purchase. A good real estate agent can also help you choose the right type of home and location based on your budget and your family’s needs.

Get Pre-approved

Now that you have a real estate agent, it’s time to secure a home loan. Keep in mind that securing a loan to purchase a second home is typically harder because lenders want to be absolutely sure you can handle the financial pressure of owning two homes. If your bank or mortgage lender denies your application for a loan, you can talk to your real estate agent about potential alternatives.

Shop Around

Choosing the right home is crucial when you’re shopping for a second home, whether it’s a rental property or a summer vacation home. Take your time to shop around with your real estate agent to find a home that fits your needs and budget. According to RealtyTrac, the median price of non-distressed homes was $216,000, while the average foreclosure home was just $155,000. Opting for condominiums or luxury apartments may be your speed if you’re looking to avoid investing in heavy renovations.

Make an Offer

Now that you know how to buy a second home and which property you want, make an offer. This process is pretty straightforward because your real estate agent will help you, and making an offer on a second home is just like making an offer on the first home you purchased.

Another personal property can be a smart investment, but that all starts with knowing how to buy a second home. If you need help figuring out which type of home is right for you or securing a second home loan, call The Henri Frank Group today. We’re happy to guide you through the process of securing the perfect new space for you.