Second Home & Investment Property Loans
Home Away From Home
Have you been toying with the idea of purchasing a second home? Maybe you have been thinking about retirement or purchasing an investment property to generate income. Perhaps you are considering a vacation home to enjoy with your family on weekends and holidays. At George Mason Mortgage we are pleased to extend several mortgage options for investment property financing.
Here are some important factors to consider:
Check Out The Market
When looking for a second home, make sure to find a real estate agent in the market you are searching in. Finding a local real estate agent where you are purchasing, as they will have a better understanding of that market than a regional agent and could have better insight on what areas tend to be sought out the most. Research important factors like property tax, local amenities and how others have fared in the local market. Don’t be afraid of considering a home that needs updating or renovations. George Mason Mortgage offers rehabilitation loans that factor the costs of upgrades and renovations into the loan amount.
How Will The Second Home Be Used?
When looking for a second home, you may already have a clear plan on what you want before making a purchase. Whether it is a vacation home, secondary residence, Airbnb, short-term rental or a combination of the all, options are available to make your dream a reality. If you have a vision already, or want to discuss use of the property or loan options, consulting a George Mason Mortgage loan officer will help you navigate the process and find what makes the most sense for you.
Can you afford a second home?
Whether your second home is a true vacation home or will generate some income from renting, factors like distance, taxes, insurance, and maintenance costs can be an unpleasant surprise if you are not prepared to budget for them. Ask yourself important questions like how long you plan to keep the property and what you will do if you run into unexpected maintenance costs. Consult a tax professional about how owning a second home or investment property could impact your taxes. And, be sure to consult an insurance agent for typical Hazard Insurance costs in the area, especially if the property is in a flood plain or you plan to rent your new property.
Get a pre-qualification.
The more proactive you are with your information gathering and planning the better equipped you will be for a smooth, hassle-free transition into second home or investment property ownership. Ask your George Mason Mortgage loan officer to pre-qualify you before you start shopping for a property. The benefits of this are two-fold. First, you will know exactly how much house you can afford and/or if financing a fixer-upper could expand your options and perhaps give you a better return on your investment. In addition, owners and real estate agents know that you are a serious buyer who is ready to close a deal.