If you’re like many people, you’re wondering if now is the right time to purchase a second home or vacation home in Jacksonville. While there’s no one-size-fits-all answer to that question, here’s how you can tell if you’re ready to buy a new home for sale in Jacksonville or one of the surrounding communities.
Should You Buy a Second Home in Jacksonville?
If you already own a home and you’re thinking about buying another, here’s how you can tell if the time is right:
- Your goals are reasonable, whether you would like to vacation in your second home or use it as an income property
- You can make the math work out in your favor
- You have the credit necessary to qualify for a second home loan
Evaluate Your Goals
Are you looking for a vacation home you can visit on weekends away from work or throughout the winter? Are you trying to create a steady stream of income by operating a rental property?
Sometimes owning a second home comes with tax benefits – but sometimes, such as when you use it as an investment property, it can cost you every April. It’s worth considering the tax ramifications before you decide whether now is the right time to purchase another home.
Check the Math
Do you have a down payment saved? Can you afford to take on a second mortgage? If you have a stable income and cash reserves, and if you’re confident in your future ability to pay to mortgage payments – even if you cannot find a renter for your investment property – you may be ready to dive into the market.
Most people find that it’s advantageous to save up at least 20 percent of a home’s purchase price as a down payment. That way, you won’t have to buy private mortgage insurance, or PMI. Also, the more money you put down, the less you have to borrow from your lender (and the less you borrow, the lower your monthly mortgage payments will be).
How’s Your Credit?
While every lender has its own requirements for credit scores, and there are dozens of loan products available on any given day, it’s important that your credit is up to snuff before you think about borrowing. When you have a good credit score, lenders are more willing to offer you better interest rates and terms.
If you’re like most people, you’ll want to make improvements to your credit score as you save up a 20 percent down payment for your second home.
Are You Thinking About Buying a Second Home or Vacation Home in Jacksonville?
We can help you find the perfect home for sale in Jacksonville.
Call our local experts at 904-806-4274 right now to find out what’s available, ask questions about home ownership, or discuss what you need so we can begin searching on your behalf right away.