Waterfront homes are a dream for many. Being close to the water offers not only stunning views, but plenty of recreational activities as well. Being close to the water is a dream for many of those who enjoy swimming, boating, kayaking, fishing, and other water activities. Whether it's a lakefront property, a beach house, or a home on a river or a creek, there are a variety of waterfront homes to choose from. However, buying a waterfront home can be a little different than purchasing inland. Here are three things that you should know.
Be Prepared To Pay More
The first thing that you should know is that water-view homes tend to cost more than homes that are not near the water. Waterfront homes in particular often come at premium prices. In fact, a waterfront home will typically cost double or more of what a comparable inland property would cost. The cost of maintenance and insurance also tends to be much higher for homes on the water. It's important to take these higher costs into consideration if you are thinking about purchasing a waterfront property.
A Real Estate Agent Is A Must
When it comes to homes with a water view, finding the right one can be a challenge. Chances are the number or available options is limited. In some areas homes on the water rarely go to market. This is why finding a real estate agent who specializes in properties on or near the water is a must. A real estate agent will know which properties will work for your needs and will be able to find you a home within your budget. Real estate agents also typically have a heads up for when properties may be up for sale.
Financing Is Key
Since waterfront properties typically cost a lot more than comparable inland properties, it's important to have your financing ready to go. Getting pre-approved for a mortgage can show sellers that you are motivated and ready to buy their home. These types of properties can cost hundreds of thousands or even millions of dollars. This may mean that a jumbo loan is required. The requirements on these loans are stricter than for other home loans. Most lenders will require a credit score of at least 700 and a down payment of at least 10 to 15 percent.
If you are considering a home on the water, there are a few things that you should know. First of all, these types of properties tend to be expensive in terms of asking price as well as maintenance costs and insurance. Hiring a real estate agent who specializes in waterfront properties is a good idea if you are looking for a home on the water. Financing is also key. Given the higher price points, you may need to take out a jumbo mortgage.