When you are prepared to buy a home, there are many inspections, evaluations, and due diligence you will need to complete prior to closing on the purchase. However, when you decide to buy a lakefront property, the value of the property can increase and also can have some important details that you may not need to worry about in a traditional non-lakefront home purchase. Here are some recommendations for you to use as you look into purchasing a lakefront single-family home.
Check Into Financing
A home situated on a lakefront property can be quite a more valuable investment, especially when it is in a sought-after location with beautiful views and seasonal activities available. For this reason, a purchase of a home on a lakefront location can be a larger investment, so you should start your financing process as soon as possible. This enables you to ensure your financing is in order before you start shopping for a home or even make an offer on a property. You want to make sure your financing is established; otherwise, you won't be able to close on the purchase.
A lakefront property purchase may also be a sizable investment, which will require you to secure financing through a jumbo loan. And with this type of loan, you may need to complete extra underwriting for the loan to be completed.
Analyze the Home Location
Another important recommendation when shopping for a lakefront home is to look at the location of the property. Is the house located right on the shore of the lake, or is the lake situated past a community park? You should also look at the lake's features, such as whether it is filled with weeds or rocky at the shoreline, and whether you have your own dock or boathouse that you can use to keep your boat or other watercraft.
You should also investigate the history of the lake and its shoreline boundaries. This will let you know if the lake has ever flooded during times of excessive precipitation or if the lake has ever been in a drought that caused the shore to recede. And if the area is prone to severe winds or storms due to the location of the lake, you will want to know if your home will be exposed to the potential of excessive damage.
Find Out Insurance Requirements
There will be some extra costs with owning a home on a lakefront property. Be sure you check into the insurance requirements for the property. Some lakefront properties will need to have flood insurance and wind insurance policies in addition to the standard homeowner's hazard insurance. Talk to your insurance agent about these requirements.Share