Picture this, sunshine, beer in hand, coasting and admiring the shoreline from boat, memorized by millionaire’s cove. What large beautiful homes edge the lakes shore, infinity pools and hot tubs waving you in, atrium windows and pressed concrete patios crisp ready for entertaining. Some just crack open another beer and dream of someday owning a lake house, others decide it’s time to take action.
If you find yourself ready to make that jump, take that action, the first step is determining your financing. When you decide to buy a lake house you can purchase it as a primary residence, a secondary home, or an investment property.
If you decide to buy your lake house as a primary residence then one can use most traditional financing and get a fixed rate interest rate if you choose. Some down payment options are as little as 3% down! Rates are so low, why would you not get a fixed rate?
If you decided to buy your lake house as a secondary home, you can still use this for friends and family but most lenders won’t let you rent the home. Mortgage rates are usually pretty similar to primary homes. You can purchase this type of home for as little as 20% down as a secondary home.
If you decided to buy your lake house as an investment property then you’d rent the home or could rent the home and use it when it is not rented. Interest rates are typically higher than primary residence or second homes. The down payment requirements are typically at 30 percent. You can actually use rental income to help you qualify for the mortgage as well!
Some lake homes come with assessments or homeowner association fees.If there are special assessments be sure you talk to your REALTOR about seeing if that can be covered at closing so you don’t have to pay those as the new buyer. These fees can be paid monthly, each quarter, or each year and vary greatly on amount.
Some lake properties come with docks. The first question you want to know is how old is the dock? Most wooden docks last from 20 to 25 years. Purchasing one that is due to be replaced can be a serious hit to your budget. Be sure to contact your insurance agent and see what your policy covers.
There are situations where sellers are willing to sell their boat, dock, or maybe even their personal water crafts in addition to their lake property. Your realtor can help you while working with a reputable title company to complete a bill of sale and contract to get you the best price and terms for the entire package. Proper title transfer at closing is very important.
If you are on a mission to find a good deal on a lake home, more times than none REALTORS know about deals coming on the market before they are even on the market. So utilizing a Main Key Realtor will not only benefit you in getting represented for the goal of best price and best terms but also give you access to properties you may not otherwise have ability or knowledge of and will be the main key to a successful close of your dream lake home!