When it comes time to buy your own private getaway, you will most likely need to consider a vacation property mortgage in Victoria, BC. I personally work with over 60 world-class lenders, and one of those organizations could get you into the vacation property of your dreams before you know it.
Understanding Vacation Property Mortgages
Whether you are looking for a second home out on the lake or a small cottage that is away from the hustle and bustle of the city, I am here to help. With a vacation property mortgage, you will be able to purchase a second piece of residential property for you and your loved ones. This type of financial product is essentially a second mortgage, and the lenders are going to look at all of the same information before approving your application.
Benefits of Vacation Property Mortgages
Vacation for Cheaper: Many people buy their vacation homes simply because they are tired of spending so much money on hotels, motels, and other types of lodging.
Plan for Retirement: Are you interested in retiring in your vacation home? Buying the home now will allow you to build equity and strengthen your finances before you officially retire.
A Passive Income: If you don’t plan on staying at the home throughout the year, then you might want to think about renting it out to other vacationers as a passive source of income.
Requirements for a Vacation Property Mortgage
Buying a second piece of property will be slightly more difficult than getting a single home loan, but my goal is to make this process as easy as possible. As a general rule, the lenders will want to ensure that your income can handle such a large investment. They will most likely need to see a fairly consistent income as well as an excellent credit score. You should also plan on putting at least 20 percent down on the home if you want to be approved as quickly as possible.
If you plan on using the equity that is in your current home, then that is another avenue that we can explore. Many people open up new lines of credit or apply for loans with the equity that they already have. Using that equity won’t necessarily guarantee your approval, but it is going to make the lenders much more likely to work with you.
What to Expect
Even though getting approved for a vacation property mortgage might only take a month or two, the lenders are going to look over every aspect of your finances. In addition to the monthly mortgage payments, they must also ensure that you can handle maintenance, repairs, taxes, and utilities. When we first meet, we can explore all of the potential mortgage products that you might benefit from and choose an option that is right for you. From there, we will need to collect your financial data and submit the proper applications. Once approved, you can immediately begin making offers.
In most cases, it is going to be a better idea to get pre-approved for a loan before you look at any vacation properties. Sellers might not take your offers as seriously if you haven’t even started the loan approval process. After you have been approved, you can use that offer as leverage when it comes time to negotiate with the seller.
Next Steps to Take
I suggest that you begin the process of applying for this type of loan at least a few months before you start searching for a vacation home. No one wants to find the vacation property of their dreams only to realize that they don’t qualify for any additional mortgage products. Following your approval, you will know exactly how much you can afford and what types of properties you should be looking at. Please call today to schedule a no-obligation consultation where we can discuss how these mortgages work and what you can expect.