Summer is often a busy time for family vacations and getaways. The kids are out of school, the weather is warmer, and you’ve accumulated enough vacation time at work to take time off. Often, if a vacation isn’t planned out well in advance, you could run into issues finding lodging that is adequate for your family’s needs at a reasonable price. Many families find purchasing a vacation home ideal. With the security of having lodging available, there’s less planning required, and you’re able to visit as often and for as long as you’d like. Similar to purchasing your primary residence, there’s some things you’ll need to consider to ensure your vacation property meets your needs.
1. Is the location of the home ideal for your family?
Choosing the location for your vacation home is important. You’ll want to consider what your objectives are for purchasing a vacation home. Evaluate the homes you are interested in and compare them against your reasoning behind purchasing the home. Does your family like going to the beach or mountains? How far are you willing to commute to get to the vacation home? Will you want or need someone else to maintain it when you aren’t at the vacation property? Do you prefer your vacation home to be near a busy city? These are some things to keep in mind when you are looking for property.
2. Will a vacation home fit into your budget?
When considering your budget for a vacation home, take into consideration the amount of your current home mortgage payments. When you are establishing a budget, keep in mind the bills that are associated with that home, like utilities, internet, or cable. Consider if your primary residence or the vacation home is in a Home Owners Association (HOA) that requires you to pay fees. Additionally, you’ll want to anticipate costs for insurance, maintenance, and repairs for both homes. Is there seasonal home maintenance that needs to be done, such as weatherproofing? After you’ve determined all of the costs related to your current home, determine a price range with our mortgage calculator for your vacation home investment. This price range should allow you to pay both mortgages and continue to save for emergencies, fund your retirement contributions, save for any college expense needs, and live comfortably.
3. Does purchasing a vacation home fit into your short-term and long-term goals?
If the vacation home doesn’t fit the needs of the family anymore, what are your plans for the home? Be sure to evaluate your goals and decide how buying a vacation home aligns with them. Do you plan on renting out the home to use it as a source of income? After you retire, will the vacation home become your primary residence? Determine what your short-term and long-term goals are and how the purchase impacts them.
With any home purchase, it’s important that you determine how the property fits into your budget and your goals. Consider what you want in your vacation home, including location and commute time from the primary residence. If you are interested in purchasing a vacation home for your family, contact a First Bank Mortgage Home Loan Advisor near you. First Bank Mortgage can help you find the ideal fixed, adjustable, or jumbo home mortgage to fit your needs.