Wednesday, June 9, 2021

FAQS About Owning A Second Home

While it might sound fun to have a vacation home or a good idea to take on an investment property, there are certainly some new questions that may come up during the process. This is a wonderful, yet competitive time to purchase a home at Lake of the Ozarks. If you have been considering this next financial step, we want to help answer and questions that may arise throughout the process. Here are a few frequently asked questions that come up during the mortgage process, but more specifically when buying a second home.


Q: Why Do I Want to Purchase A Second Home?


A: This may seem like a simple answer, but for second homeowners, it could be much more involved. For many homeowners, a second home is going to be a weekend getaway where they can enjoy the serenity of the lake, and for others, it will be intended as an investment property to generate rental income. Knowing how you want to use this property from the start will affect many different choices down the road.
 

Q: Can I Handle the Financial Responsibility?


A: This is something that you will have to consider carefully. Not only will you be taking on the additional mortgage, but you will also be signing up for a second homeowner’s insurance policy, property taxes, homeowner’s dues, additional utilities, and maintenance. Another aspect that is unique to a second home is that they do not qualify for government-backed mortgages. If you are curious about how a second home will impact your finances, be sure to fill out the application on our website (www.yourlakeloan.com) and we can help guide your through this process.
 

Are Interest Rates Higher for an Investment Property VS. A Vacation Home?


A: Yes, they can be. When a buyer is purchasing a home as their vacation property at Lake of the Ozarks, for example, it is generally far less risky than for an investment property. If someone is planning to purchase a condo or a lakefront home and will be relying on renters and vacationers to assist with paying for the mortgage, it can often be seen as a risk. This does not mean that you cannot get good rates, though. Whether you are interested in getting a mortgage on an investment property or a second home, fill out the application on our website and we can talk about the details.
 

Q: What Are the Most Popular Ways to Purchase A Second Home Property?


A: There are several ways to make this happen. A common strategy is to do a cash-out refinance on your primary home to get the proceeds for a down payment on the new purchase, or to pay cash for it if there is enough equity in your primary home. A second way is to get a HELOC (home equity line of credit) on your current real estate. A third way is to get a conventional loan on the second home. All three options are things we can help with, and we can show you all the options to help you decide which one is right for you.


Ready to Buy Your Dream Home?


The first step is to visit our website at www.yourlakeloan.com and complete the online application. After you have completed that process, we can discuss which options are better suited to your needs, and help you choose the right financing options. At Team Lasson, we are so excited to help you make your dreams a reality, and we look forward to assisting you in purchasing a home at Lake of the Ozarks. Visit our website to learn more about our team, as well as to get started!

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Michael Lasson
Senior Loan Officer
NMLS #: 493712

4655 B Osage Beach Parkway
Osage Beach, MO 65065






**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.


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