Buying a second home is an investment, you may be planning to rent the home or use it as a vacation home. However, before you sign off there are a few things that you need to be certain about so that you can be sure that you are making the right decision.
A careful look will have to be taken at your finances, the location of the property, and the condition the home is currently in.
How Are Your Finances?
The first thing you need to consider your budget. The last thing you should do is stretch yourself beyond your limit. Even if you have the money to buy cash, you may want to consider if this is the best option.
Saving your money and getting a mortgage should not be ruled out. If buying cash is going to make it difficult for you to stay on your feet and provide for your basic needs for a long period, a mortgage may be a better option.
If you are taking out a mortgage then you will need to have a good credit score and it is best if the mortgage on your first home is already paid off.
Think About Your Location
Before you sign off on any home you may want to carefully consider its location. A cozy hideaway with a lot of privacy may be too far from essential medical services especially as you age or if you or a family member have a serious illness.
Are you far from the main roads? Consider if your neighbors are too far. A secluded home may be perfect for a vacation home but what if you ever need to rent it or sell it, how would a future buyer look at it.
Do a careful needs assessment so that you can make the right decision. The location of your new home will affect any plans you may have for it beyond using it for vacation.
Get a Home Inspection Report
Before you sign off you should get a home inspection report. This is because what you see is not always what you get.
A home may look great from the outside but, what is it really worth? What you may not be seeing are foundation cracks, bad plumbing, and electrical wiring. To spot some of these hidden flaws you will need to get a home inspection report.
If you don’t feel satisfied with the outcome of the report you can ask the owner to fix the flaws. If they don’t want to do that then they should drop the price of the home so that you have some credit towards the repairs.
Time to Sign Off
Once you have carefully considered everything that has been discussed here and you are satisfied with the answers then it is time to sign off on your new property.
Once the deal is closed it will be time to think about the fun stuff such as decorating and planning your first housewarming party. Setting up your new home will be a lot easier once you feel satisfied that you have made the right decision.
CANDY TAI is a wife to David and mom of 5 with a degree in Communications. She's a native Texan (Hook 'Em Horns!) who's been making her home in the Kansas City metro area for nearly 15 years. She loves being able to shuffle her kids from their various sports activities, piano lessons, and school activities. She enjoys fashion, beauty, reality TV, and moviegoing.