Buying a second Home
Second Home Financing
Second homes will have special considerations for financial and lending requirements/eligibility. We can help you determine the affordability of a vacation home, and guide you through the specific lending requirements that are needed for your second home. With our large selection of mortgage products, we can find the perfect home loan that fits your needs for the other home you have been dreaming of. We can tell you the requirements and eligibility necessary to make your vacation home a reality.
Location, Location, Location
Where have you been dreaming to call home? Are you looking for a place in the big city? To put your feet in the sand? A place to ski? Something near greens? Whatever you are dreaming of, your second home is a special place, with specific financial considerations. Take advantage of our expertise and Mortgage knowledge and learn about your options. We want to help you make your dreams come true.
Things To Consider
Will you rent out your second home when not in use?
If you plan on renting out your vacation home when you are not staying in it, a lender may view it as an investment property rather than a second home. Lending requirements may be different for investments than vacation homes. We can show you the difference and help you determine what is best for you and your needs.
Distance from your primary home?
Vacation and second homes have unique lending stipulations; such as how far away your second home can be from your primary residence. With so many different loan options and requirements for a second home, we can help you decide what program is well suited for the specific property you are looking at. Some products may or may not be available for every property.
Who else will live in the home?
Your second home may be occupied by family or friends, but to be a true second home you cannot collect rent. We can help you distinguish between second home and investment home lending requirements in order to find the loan which matches your goals and needs.
1.
Get Pre-Approved
This is the time to get in the know. A pre-approval will give you an advantage when you find your perfect home. We can tell you what you need to get pre-approved, so you know the exact loan amount you qualify for, what your monthly payment will look like, and how much taxes and insurance will be. With a pre-approval, the loan process will be smoother and your offer will be stronger.
2.
Loan Application
Your application will provide a complete picture to loan investors of your assets, debts and what you are buying. It will take into account documents such as pay stubs, proof of income, tax returns, employment history, and information on all debts, assets, and sources for down payments. Don’t worry, we will request these documents as applicable for your loan application so that you can be fully prepared.
3.
Select Your Loan Program
Fixed rate? Adjustable? FHA? There are multiple loan options that may fit your unique needs, and we can help you choose. Are you looking for the consistent rates and payments that a fixed rate loan can provide? Do you want the short-term benefits of lower rates that an adjustable rate loan can bring? Our extensive portfolio of loan options means you have more options available to get just what you need.
4.
Processing and Underwriting
Your loan has specific investor guidelines that must be met, and an underwriter will review your documents to be sure that you meet them. While an underwriter reviews your file, an appraisal will be ordered on the home. Additional information may be requested, so don’t panic if you have to turn in more documents. That’s just the underwriter working hard to get your final approval.
5.
Loan Approval
Before your loan is approved, you will receive pre-approval and a list of closing conditions that need to be met. These conditions can include verification that your employer is current and proof that homeowner’s insurance has been obtained. Once closing conditions have been satisfied, the underwriter issues a clear to close. Congratulations, your loan has been approved!
6.
Close the Loan
With an approved loan, you are on the home-stretch towards closing. The lender will send closing documents to a title company that draws up paperwork and arranges for signing of documents. Once the documents have been signed and funding conditions have been met, the title is recorded and the process is complete. You are a proud owner of your new home, and the keys are yours!
