Are you planning to buy a vacation home where you can relax and spend some quality time with your family? There are certain things you must consider before making a purchase. Check out this article for some useful advice.

Buying a vacation home can bring you numerous benefits: you’ll have a special place where you can sneak off to every other weekend during the year, or spend quality time with your friends and family on holidays. You should also look at purchasing a vacation home as an investment, as you’ll be able to rent it out when you’re not using it. Recently, Americans have become more inclined to stay in a vacation home rental as an alternative to a traditional hotel or resort.

Either way, you have to do your research properly before investing in a second home. You must carefully assess your financial situation in order to be sure that you can afford such a big purchase. Be sure to explore several financing options and decide what exactly you are looking for in a second home. Here is some useful advice you should consider when deciding to buy a second home.

Never buy impulsively

Resist the urge to return from vacation with the keys to a new house you simply “fell in love with.” It might be tempting, but you could also end up with a home you can’t afford. Instead, research the real-estate market in the area and thoroughly inspect the property before signing any papers.

Decide on the ideal location

Initially, determine where you would like your second home to be located before shopping around. Settling on a specific area prevents you from doing additional research and hiring multiple brokers. Do you want a summer home? Los Angeles, West Palm Beach and Phoenix are three of the best places in the U.S. to make such a purchase. Are you a winter sports enthusiast? You can start looking for affordable Quechee homes which are within driving distance to Boston or Montreal.

Consider the additional costs

Vacationing somewhere isn’t the same as owning a home there. When calculating your budget for the home, don’t forget about insurance and maintenance. Keep in mind that some of the most desirable areas for summer homes are at a higher risk for hurricanes, floods or forest fires. Consequently, insurance can be pricey. For maintenance, a good idea would be to set aside 2-percent of the home’s value every year for occasional repairs.

Explore financing options

If you decide to apply for a mortgage to purchase your second home, don’t accept the first terms a lender offers you. Explore your options and see what else is out there before making any decisions. Don’t just include big national banks in the search — credit unions, for instance, offer better interest rates.

Buying a vacation home outside your area can often prove tricky. However, if you’re careful and financially responsible, it can pay off in the long run. You will have a cozy place to which you can escape, and you will be able to rent it out from time to time to cover some of the expenses. Who knows, maybe you’ll even turn a profit in a few years.