Congratulations! You’ve made the decision to purchase a second house. Whether you need an investment property mortgage or you plan to buy a vacation home, there are some mortgage mistakes you should do your best to avoid.
Not Getting Pre-Approved for a Second Home Mortgage
As with the mortgage for your first house, pre-approval is an important step in the home-buying process. Pre-approval will give you an idea of what kind of mortgage you can qualify for so that you don’t get your heart set on something that you can’t afford.
Not Researching Second Home Mortgages
As with any big decision, you should do your research and get properly educated. Know what your options are when it comes to a mortgage lender. You may also want to research the area where you plan to purchase your second home and consider things like property taxes and the real estate market.
Not Choosing the Right Second Home Mortgage
Avoid sticking with the same mortgage provider simply for the sake of convenience. If there’s something you didn’t like about your first experience, don’t be afraid to shop around. You may want to consider going through a private mortgage lender for your second home mortgage.
Not Being Able to Afford Two Mortgages
It can be tight to pay for two mortgages simultaneously. Before you make the decision to apply for a second home mortgage, review your budget and ensure you can afford the mortgage payments and taxes for both properties. You may want to review your budget with a mortgage lender as part of the application process.
Forgetting About Additional Costs
When you sit down to set a budget and determine what you can afford for a second mortgage, don’t forget about the added costs that are associated with owning an additional property. Consider the costs of insurance, furnishings and decor.
Avoid these five mistakes and you’ll be one step closer to relaxing on the beach by your new vacation house! Make your dreams a reality with advice and lending solutions from a private mortgage lender.
Whether you’re looking to borrow or invest, Alta West Capital can help. We offer a number of lending solutions for first time buyers, individuals and families that are new to Canada, self-employed business owners, real estate investors and more. Alta West loans are fast and flexible to fit your needs. Visit our website to apply online or contact us directly. Call (403) 254-9075 or email email@example.com.