Are you interested in buying a lake house? Not sure how to approach this process, or what you need to know before you get started? We’re here to help!
In this article, we’re breaking down the basics of buying a lake house. So you can conduct your search in the smartest and most efficient way possible.
What You Should Know Before Buying a Lake House
Buying a lake house is a little bit different than buying your standard house. Here are some of the things you should know before you plan to purchase any lake house property.
How You Use Your Lake House Matters
Before you purchase a lake house, you need to know how you plan to use the property. That’s because the way you intend to own and use your home will impact factors like mortgage rates.
There are three different options for owning and using your property:
- Primary residence
- Investment property
- Second home
If you plan for this home to be your primary residence, you’ll most likely get the lowest mortgage rates. If you plan to use the house as your second home, mortgage rates will be similar. But if you plan to rent out the home, you won’t be able to get a loan.
And if you plan to use your home as an investment property, you’ll deal with higher interest rates as well as a higher down payment. So, before you purchase and finance a lake house, determine what your use will be so you can know what to expect.
Are you just starting your home search? View these lakefront homes to see what’s available.
Consider All of the Costs Involved
Buying a lake house is about more than just the mortgage. There are a ton of other costs you should consider.
Waterfront properties tend to be more expensive than other property types, and if you’re purchasing it as a second home, you’ll have to put down a larger minimum down payment.
Additionally, you’ll have to pay for additional forms of insurance like flood and insurance. You’ll also want to set some money aside for maintenance work, as well as fun lake house activities like water skis, jet skis, and kayaks.
Use an Expert Real Estate Agent
Because purchasing a lake house is so different from purchasing a standard home, you’ll want to hire an experienced real estate agent. That’s because they’ll know what to expect and what to look out for during the buying process.
They’ll be sure to ask questions about things like utility bills, internet connection. This will help you make sure you’re getting exactly what you want.
Get The Lake House Inspected
Getting a home inspection is vital when purchasing a waterfront property. That’s because water can do a ton of unseen damage to your home, and result in issues like water intrusion and mold.
So, before closing on any lake house, make sure it’s fully inspected. If there’s a septic tank, have that checked out. That way if there are any issues you can have them addressed before you move in.
Ready for Your Lake House?
Owning a lake house is wonderful, but buying a lake house can be a challenging process. By following the tips outlined in this article, you can shop for a lake house in the smartest way possible, and find your dream home in no time.
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