Helena Talbot's blog - Thinking of Buying a Vacation Home?

Real estate markets across the country are seeing a similar trend: Buyers are taking advantage of the low mortgages by purchasing vacation properties. Specifically, they are buying homes in exotic locations, like at the beach or lake, or in the mountains for prime skiing.

While some of these buyers plan to use the second home as a vacation spot, many are thinking about the possible investment potential. Either way, some are running into trouble when it comes to mortgages. It may be hard to believe, but lenders are stricter with vacation home mortgages than for traditional homes.

Even with immaculate credit, getting a vacation home mortgage can be tough. If you’re thinking about purchasing that house near the slopes, or a lake-front property not too far from the kids, then consider how much it will really cost before you get your heart set on a specific property.
Vacation homes are often more expensive than a traditional home based on location alone, and as a result, lending is tighter. This doesn’t mean you should be discouraged, but it does mean you need to be hyper-aware.

Your credit must be great—720 or above for most lenders. The lender will also scrutinize your existing debt, property taxes, and the mortgage on your existing home. 

Additionally, many lenders have been giving out “jumbo” mortgages for vacation and investment properties—mortgages with higher interest rates. Unfortunately, new mortgage guidelines put out by the Consumer Financial Protection Bureau will go into effect in 2014 and may put an end to these popular loans. 

If you can afford it, you are better off paying cash than taking out a mortgage with sky-high fees.

Another thing you might want to take into account when looking for a vacation home? Location. Lenders heavily scrutinize the location of your future property.

While all markets took a property value hit, vacation destinations took the brunt of the real estate crash. If the lender thinks the home is in a location where prices may continue to drop, they may reject your loan application. Lenders may also be weary of giving out an out-of-state loan, or working with a location they are unfamiliar with. 

A vacation home can be very rewarding, both in its ability to provide a relaxing escape for your family, and in its potential as an investment property. Just be sure to do your research before you jump on board the vacation home bandwagon.

Ispecialize in helping buyers and sellers invest in real estate in Loudoun County and Northern Virginia.

I have over 25 years experience in the real estate industry.  As a Broker/Owner with Exit Realty Talbot and Company, I bring special tools and solutions that enable me to exceed the expectations of my clientele.  If you are considering listing your property in Loudoun County or the nearby areas, ask me about our latest internet marketing systems.  I would appreciate the opportunity to earn your business.  I am experienced in listing and selling short sales.  For information on the short sale process, please visit  www.LoudounShortSaleSolutions.com.

For a free market analysis on the value of your home, please visit http://www.LoudounHomeValues.com

My past awards and designations include – 2003 President of the Dulles Association of Realtors, 2003 Dulles Area Assoc Realtor of the Year, Salesperson of the year 2000 Dulles Area Assoc of Realtors,  Top Producer awards from both the Dulles Area Association and the Northern Virginia Association of Realtors.  I am a member of the Top 5 in Real Estate Network.

I have lived in Loudoun County since 1979.  I am married with two grown children and two grandchildren.  My son in law is my business partner in real estate.  I love to jog in the mornings and spend time relaxing on my Trawler during the summer months.

Loudoun County and Northern Virginia Real Estate Sales and Solutions – Helena Talbot, Broker. I specialize in helping buyers and sellers invest in real estate in the Northern Virginia area to include Loudoun County and surrounding areas including Fairfax, Clarke, Fauquier, Prince William  Counties.  Our local neighborhoods includeLeesburg, Ashburn, Sterling, Potomac Falls, Brambleton, Broadlands, Lansdowne, River Creek, Belmont Country Club, Beacon Hill, Shenstone, Waterford, Lovettsville, Purcellville, Hamilton, Round Hill and Bluemont.                        Cell 703.727.9885    Office 703.574.3800

Free iPhone/Android Mobile App to search Northern Virginia real estate.  2 easy ways to get the App:  Text “Exit9” to 87778 or enter http://87778.mobi/Exit9 into your browser.