Considerations for buying a second home: Financial and lending requirements
Dreaming of a home away from home? A second home or vacation home? From Wine to Ski Country to a place at the beach, we at Guarantee Mortgage will help fund your dreams.
When considering a second home purchase, you need to consider financial requirements—whether or not you can actually afford a second home—and lending requirements—what lenders look for when financing a second home.
Financial requirements: Can you afford to buy a second home?
How much income do I need? Does my credit score matter? Does the amount left on my existing mortgage matter? What kind of interest rate will I get?
Requirements vary depending on your financial situation, on the loan you want, and on how you plan to use the home. Check out our mortgage calculators to determine how much second home you can afford, or email a Guarantee Mortgage Loan Advisor, who’ll be glad to tell you what you need to qualify to buy a second home, and guide you through the lending requirements for a second home purchase.
Lending requirements: Will lenders consider your second home a “true” second home?
Not only must you be aware of the financial requirements for a second home mortgage; you must also be aware of the lending requirements, which vary from lender to lender. For instance:
- Will you rent your second home when you’re not staying in it? If so, then lenders may consider the property an “investment” home, which means they’ll look at it through a different lens. Read more about buying an investment home here.
- How far away from your primary home will your second home be? Again, different lenders abide by different distance requirements.
Give us a call at 1-866-612-5050. A Guarantee Mortgage Loan Advisor will be happy to speak with you about your options and advise you on the most advantageous ways to make your dream of a second home come true!
Talk to us! Ask questions. See what your financing options and alternatives are.
Guarantee Mortgage offers a wide array of competitive second home purchase options and our Loan Advisors are well equipped to walk you through the various nuances of qualifying for and getting you into your second home.
Ready to get started? Fill out our online mortgage application form.
If you are ready to get started, then you’re welcome to complete our online mortgage application form. Don’t worry about documentation at this point—your best-informed estimates will work to begin with. We’ll route your application to a Loan Advisor experienced in helping homeowners buy second homes, and that Advisor will get back to you within no more than one business day.