How To Buy A Vacation Home In St Louis, Chicago or Indianapolis

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New Home Purchase

With interest rates at historic lows, if you’ve been looking to buy a second home or a vacation home, or purchase a rental property for an investment, there isn’t a better time than the present.  If you’ve been in the market, but have been putting it off, it’s time to get going.  Start your search by getting pre-approved for your mortgage by The Home Loan Expert, Ryan Kelley.  That way, you’ll know what range you’re looking in, and what you can afford.  We can talk about property flipping another day.  This post is for people who want to keep their second home, and either use it for rental property or for a vacation home.  There are some factors that need to be considered for each scenario.

For example, flood insurance is a necessity if you buy a beach or lake property.  If it’s not going to be a full-time resident, this is a huge tip.  A little water, if not treated quickly, leads to mold and thousands of dollars in damages.  Get flood insurance if you are near water.  Make sure that all of your insurance is up to par.  If you are going to rent the property, you have to make sure that you are prepared for any eventuality that your renters can come up with.  The damage deposit may not cover everything!  A vacation home is the same way.  You won’t always be there.  If your uncle sets the place on fire, you want to have solid insurance.

When you are acquiring the mortgage, remember, it’s going to be the same as when you obtained your first mortgage, except this time, you need to be able to qualify despite what you owe on your current mortgage.  We can help with that.  We love having repeat borrowers at The Home Loan Expert.

You will have to come up with 10-20% for the down payment, and do everything that you did for the first mortgage, including income and asset verification, credit checks and everything else.

In terms of taxes, it’s all about how you use the place.  If you use it as a vacation home or getaway, you can get tax rebates on your mortgage interest payments, and also property tax rebates.

If you’re renting, though, make sure that you know that you WILL be taxed on it, and take that into account.  Generally, you can rent without substantial penalty for up to 14 days per year, but that’s not always the case.  You can also be taxed higher on the home if it’s not assessed as a homestead.

Get Started

You can call The Home Loan Expert, Ryan Kelley to apply for your new vacation home mortgage.  We will walk you through all of the steps and help you understand what you need to do to move into your new 2nd home.  If you want to talk more about it, or just have any mortgage questions, call us in St. Louis at 314-781-9400, In Chicago at 773-770-4727, in Indianapolis at 317-550-1515, in Nashville at (615) 810-8555 or anywhere in the United States at 800-991-6494.  You can also apply online at www.thehomeloanexpert.com or follow us on Twitter (@TheHomeLoanEx) to learn all about mortgages and get your mortgage questions answered.  Nobody makes it easier to buy a new home or refinance your current one than The Home Loan Expert, Ryan Kelley.