Applying for a mortgage to buy a house (first or second) is quite normal. In fact, consider that few people today have such large sums of money available that they can buy houses (even for a few tens of thousands of euros) in cash! So if you need a mortgage to buy the lake house of your dreams then you don’t have to worry.
Rather you must know that the mortgage for the purchase of the second home does not enjoy the same benefits as the one that is paid to buy the first home: THE INTEREST RATE IS HIGHER! However, do not despair, there are requirements imposed by law which, if respected, will allow you to take advantage of the benefits enjoyed by people who buy their first home https://www.thehouseguysdc.com/we-buy-houses-maryland/
In fact, you must know that a property (the second home you are buying) falls into the first home category which:
– is not listed as a luxury home and exceeds 160 m2;
– it is located in the same municipality of residence as the applicant or in the one where he will reside within 18 months of signing the loan;
– the loan applicant must not have ownership, use and usufruct rights, or rights of habitation over other houses in the same municipality;
– the applicant does not already benefit from the first home benefits on another property.
You will be entitled to benefit from the concessions provided for the first home loan if you can demonstrate that you will meet all the requirements that I have just indicated.
Furthermore, precisely because it is expected that those who can afford to buy a second home are generally in better economic conditions, banks impose more restrictive conditions than those for first home mortgages:
– limit the duration of the loan to 30 years;
– verify that the impact of the installment on the monthly income is less than 25%;
– not all banks grant a loan that finances 100% of the cost of the property.
When you prepare the documents, you must therefore take into account the requirements necessary to access a first home loan: you could save a lot of money! Otherwise, by submitting an unsuitable request you will face a certain refusal by the bank.