Fairway's Second Home Buying Checklist
Start here when it’s time to buy a second home!
Consider Your Reasons
It's important to assess why you want to buy a second home. Are you looking for a rental property? Do you want to have a place for your family to vacation?
Consider the Timing
Determine if this is the right time to buy. What are the market conditions? Are interest rates at a low ... or a high? Do you have the personal finances to buy a second home?
Your second home will need to have homeowners insurance, just like your first home. Talk with your insurance agent about the possibility of adding a second home.
Consider the cost of taxes. If you rent out your second home for fewer than 15 days annually you don't have to pay taxes on the rental income. However, if you rent it for more than 15 days per year you will need to report that income.
Figure out what you can afford for a second mortgage. Be sure to include the cost of property taxes, maintenance, and insurance.
Location matters! Consider where you want to buy. If you're looking for a vacation home, you probably don't want to stray too far from your first home. If you rent it out, is the second home in a desirable area?
Work With a Realtor
Working with a local real estate agent can help you narrow your field and understand the real estate market in your desired location.
Secure a Mortgage
Work with a respected mortgage lender to secure financing for your second home. Lenders will look at your credit history and debt-to-income ratio to determine if you qualify for a loan.
Consider the Future
What will happen to your second home once you're gone? Do you want it to be sold? Be sure to update your wishes in your will.