Is Buying a Second House Easier Than the First?
Buying the Second & Subsequent Properties Becomes Easier
Individuals who have successfully purchased a home understand that the process can be difficult and time-consuming. As an existing homeowner, you may be wondering if buying a second house is easier than the first. Luckily, buying a second home can be much easier than buying the first!
When you begin the process of buying a second home, working with your current home loan provider can make everything much easier because they have your previous application and your information on file, which allows them to review with ease. However, you may want to explore other home loan providers to determine if they are offering better interest rates, terms, and features.
As a homeowner, your financial circumstances will ideally stay the same or improve after you have purchased your first property. Home loan providers will also want to see that you have built equity in the first property you purchased. Some lenders believe that it can take up to five years for you to build meaningful equity in your first home.
Equity refers to the difference between the value of your current property and the amount currently owed on your mortgage. For example, if your property’s current value is $500,000 and you owe $150,000 on your existing mortgage, the equity of your home will equal $350,000. You can access the equity you have accrued through owning your first home by refinancing. Once you have access to your equity, you will have the potential of using it as a deposit on your second home.