Investing in real estate can be a great way to expand your investment portfolio and bring in passive income. If you’re interested in purchasing a second home but aren’t sure where to start, this video from Homebuyer’s school goes over the essentials.
Before you purchase an additional home, it’s best to go over the costs. In addition to taking on a second mortgage, you’ll have to cover the cost of utilities, insurance, and maintenance. Try to get a better picture of what your expenses will look like so that you can determine how much home you can afford.
When you’re ready to buy, you’ll need to get approved for a second mortgage. There are several options for financing your real estate purchase, including a jumbo loan or a conventional loan. Keep in mind that you’ll probably be expected to make a larger down payment than you would make on a first home.
Figuring out how to buy a second home isn’t as challenging as you might think. Don’t be afraid to explore your options and take a closer look at your local real estate market. You may discover a property that’s a terrific fit for your needs.