Purchasing a waterfront home is a step-up from owning a regular home. A waterfront home provides you not just with a place to live but also with a place to relax with a great view at the same time. Purchasing a waterfront home is a special investment.
Important Step #1: Get Pre-Approved for Financing
First, you need to get pre-approved for financing. Most sellers are only interested in accepting an offer from a seller that has been pre-approved for financing. It is important to understand that being pre-qualified is not the same as being pre-approved.
Being pre-approved is a more involved process and helps set you on the way to being approved for a mortgage. Waterfront properties often get lots of offers, so be sure to have all your financing figured out.
Important Step #2: Research the Water
Second, when it comes to waterfront properties, you need to do more than research the home; you need to research the body of water that the home is located next to.
You need to know what type of rights you have to the water in front of your home. It is helpful to know how deep the water is and what type of boats you can take out on the water and what type of water activities you can do.
You don't want to purchase a waterfront home with the idea that you will do a lot of sailing only to realize that the water is not deep enough for a sailboat after you move in. Do you research ahead of time, so you know everything possible about the body of water before purchasing the home.
Important Step #3: Understand Flood Insurance
Third, it is important to understand flood insurance if you are interested in purchasing a waterfront home. Flood insurance can range from very affordable to expensive, depending on the history of flooding in the area where you are looking to purchase a waterfront home.
Find out what flood insurance will cost you, so you can make sure that you will be able to afford to pay for it once you purchase your home. Keep in mind that most mortgage lenders will require you to carry flood insurance if you purchase a home in a flood zone.
Important Step #4: Learn About Association or Community Fees
It is common for many waterfront properties to be part of an association or community that governs the lakes as well as the properties on the lake. Find out what type of associations and communities are in place, and what your commitment will be from both a financial perspective as well as from a responsibility perspective.
When it comes to purchasing a waterfront property, you need to make sure you have your financing in place, as waterfront properties generally don't stay on the market for long. Be sure to research the body of water the home is on, to be sure the water meets your needs. Look into flood insurance expenses and be sure to learn about any association or community fees and obligations.
For more information on waterfront homes, reach out to a real estate agent.