Buying a Second Home

buying a second home

Thinking of Buying a Second Home?

Two is better than one, and that concept can apply to many things – including buying a second home. If it seems like a risky, or simply an expensive proposition, there are many reasons why it still could be right for you. Just consider these points:

  • It is a sound investment: Like any asset, a second home can appreciate or depreciate in the short-term. But in the long term, a home tends to gain in value.
  • It’s a retirement strategy: Adding a second home to your investment portfolio can be an important hedge against your other assets. If you need access to cash, you can get a reverse mortgage or sell the property.
  • Aloha vacation!: If you find a location where you to vacation, why not buy there? You can go any time you want to escape daily life for a while. And when you’re not there, you can rent it out for extra income.
  • The switcheroo: If you get tired of living in your main residence, why not switch? Live in your second home and rent out your primary place.
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As with any home, you need to follow the mortgage guidelines. Two of these involve pre-qualifying and pre-approval. They may sound the same, but they are not.

Pre-qualifying means that, after taking a quick look at your income, credit, assets, and debts, a mortgage lender will give you a ballpark figure about how much you may be allowed to borrow. This is not a loan. It simply lets you know the price range of homes to look at.

On the other hand, a pre-approval is an actual conditional commitment about how much a mortgage lender will let you borrow for your second home. While you still have to follow through the application process and sign on the dotted line, you will know the interest rate you can get, the maximum you can borrow, and other basic terms of your mortgage. Show your pre-approval letter from Shamrock Financial to your real estate agent and the seller, and they will know you mean business.

Part of the mortgage process involves creating the actual loan, also known as the loan origination. When you give your financial information to be processed by a mortgage lender representative, you probably are working with a loan officer.

Loan officers at Shamrock Financial do far more than simply start the paperwork for creating your loan. For example, they:

  • Are extremely knowledgeable about looking at your loan application and helping you find the right product for your needs.
  • Can suggest ways that you can adjust your finances to get better terms for your mortgage.
  • Research any local, state, or federal programs that can make buying, refinancing, or renovating your second home even more affordable.
  • Recommend other professionals, such as a real estate agent, who can add their particular expertise to buying a second home.
  • Will guide you through the process of buying a second home, explain the terms of the mortgage and fee structure, answer any questions you have, and keep you in the loop during the entire transaction. In essence, they take the guesswork out of buying a second home.
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The Benefits of Working with Shamrock

When the time is right for you to buy a second home, come on in to Shamrock Financial. Mortgages are our business and only business. For over 27 years, we have been servicing first time buyers, buyers for second homes, and sellers to find the right mortgage product given their situation. Talk to us about buying a second home, and reap the benefits!