3. Look into the Tax Implications
Second homeowners need to be aware of both property taxes and if renting out the place, income taxes.
Though taxes are inevitably a burden, planning during the house-hunting process can save you thousands of dollars a year. For example, if you’re renting out a vacation property, some days you spend there can make a difference in how much you’ll owe in income tax.
4. Come up With Short-Term Cash and Long-Term Financing
Most people pay for their home with a combination of a down payment and a loan for the remaining amount. The higher your down payment is, the lower the credit on it, and so the more house you can afford.
To come up with down payment cash (which should be at least 20% of the purchase price), you may need to get creative, using the equity in your primary home, borrowing against a life insurance policy, or refinancing your car.
Most buyers will also need to get a home loan to help with the rest of the financing. Shop around by reviewing the various mortgage options and sample payment schedules and factoring in your own short- and long-term goals. You should be able to find a mortgage that suits you.