YodZiaN

The smell of summer is in the air, and all I can think about is how to finance my second home. Of course I have been talking about this beach cottage since George Bush Sr. was running the country. Like clock-work, I leave the hustle and bustle of Los Angeles in search of my dream home on the sand. Once again I find myself driving down the coast to beautiful San Diego. The waves are good, the people are friendly, and the weather is flawless.

Being a mortgage consultant, you would think I would just pull the trigger and finance this dream home. One problem…my dream home is selling for 4 million dollars. It might be chump-change for my Hollywood friends, but 4 million for a vacation home is a lot to pay. Then the little voice inside my head spoke again..He said, “Art-boy..How many times do you live?” I guess the answer is simple. We only live once. This is a good mentality if you can separate your emotional attachment with buying investment properties. If you can afford the mortgage payment, and you are buying a vacation home simply to enhance your life, then its important to have your financing approved prior to making an offer on a home.

There has been a considerable increase in people buying second homes, and its not just in California. People in Florida, Michigan, Georgia, Washington and Virginia are buying second properties at a rapid pace. If you are considering the purchase of a vacation home or investment property, talk to your loan officer and get pre-approved for a specific amount. This way you will know your price range for buying a home.

For financing purposes it is important to determine whether or not this will be an owner occupied second home or a non-owner occupied rental property. The the specific Read more…