How to Buy Your Second Home in Salt Lake City (While Still Keeping Your First)
If having another residence sounds appealing, these tips on how to buy a second home without selling the first will open you up to this exciting option.
Homeownership is the American dream, and many people experience this wonderful part of life. Some people are even able to buy a second home. Is this one of your goals?
If so, you might wonder how to buy a second home without selling the first. This option isn't possible in all situations, but it is for some.
You can do this in several ways. You'll just need to find the right method for your situation. Continue reading to learn more.
Consider the Purpose of a Second Home
Before proceeding, consider the purpose of buying a second home. Some people buy second homes for investment property purposes. You could rent your first or second home to collect rental income.
You can use one of the homes for Utah vacation rentals. You could also use the second home as your personal vacation property.
Once you know your purpose, start navigating the Salt Lake City real estate market. Looking at the market helps you see the available properties and prices.
Get a Second Mortgage
One method for buying a second home while keeping your first is to get a second mortgage. In this case, you keep your first home and its mortgage. Then, you apply for a second mortgage.
Unfortunately, this option will only work in some cases. The lender will need to know a few things before approving the loan.
First, the lender must review your financial situation. They'll examine your income, expenses, debts, and net worth. The purpose is to determine if you can afford another loan.
Another purpose is to ensure you are creditworthy. Thus, they'll check your credit report.
The lender will also consider the purpose of your second loan. For example, they'll consider the rental income amount if you want to rent one of your homes.
Tap Out on Your First Loan
You can learn your home's value by getting a property appraisal of your first home. The purpose is to determine how much equity you have. With enough equity, you might be able to purchase a second home with your equity.
An appraisal tells you your home's fair market value. If you subtract your first loan balance, you can find your equity. With enough equity, you could purchase a second home without getting a second loan.
Your lender can explain your options for tapping into your equity. The two most common options are home equity loans and home equity lines of credit (HELOCs).
How to Buy a Second Home Without Selling the First
Are you interested in learning how to buy a second home without selling the first? Look into these options. If you can't find one that works, talk to a real estate agent to learn about other methods.
Susie Martindale Group can help. Our team is ready to help you buy or sell a house. We are experienced, eager, and ready to serve you with quality services.
With over 70 years of collective experience, we have what it takes. Reach out to us to get started.
