At Palm State Mortgage Company, we can not promise that Love is Sweeter the Second Time Around, like the old song says. However, at this time, a second home purchase might bring you some sweet financial results.

Experts are saying, “If you have been toying with the idea of buying a second home, now could be a good time to take the leap. Interest rates are still historically low and home prices are recovering from the bust, but aren’t out of reach.”

Likewise, Edward Achtner, a Bank of America regional sales executive in California, stated, “What our customers tell us, and what the data tell us, is that for an individual who is well-qualified and who clearly wants to purchase that second home, this is an outstanding time to buy.”

“Growth in the equity markets has greatly benefited high-net-worth households, thereby providing the wherewithal and confidence to purchase recreational property,” said Lawrence Yun, chief economist for the National Realtor.

We base our assertion on a few salient facts, and as usual, some excellent statistics:

1. The Jump:  “Vacation home sales jumped nearly 30 percent in 2013 from 2012, according to the Realtors.” They took a hefty 13 percent of all transactions! This was their best score since 2006, although still about one-third below that peak.

2. Not Getting Any Cheaper: The above mentioned activity is pushing prices on typical second homes higher, 12.5 percent higher than last year.

3. ROI News: Vacation home buyers reserve their homes for their pleasure but also use them as vacation rental properties, or sales for financial return.

Amazingly, five percent of last years’ buyers have already resold their properties, and nine percent will be selling this year. As you might guess, twenty-eight percent of the buyers of second homes told Realtors that they purchased their second homes, not only for their own pleasure, but also in order to diversify their investments.

Do not forget that if you plan to rent your second home to other happy vacationers, you will have to consider additional tax ramifications, particularly if the rental period extends beyond 14 days a year.

Our Mini-Primer for Second Home Buyers

If you are considering a mortgage for a second home, Palm State Mortgage Company presents our primer for special tips for second home buyers:

A. “A” is for an agent, to help you in market scouting! When you search for that dreamy second home, be sure you choose a real-estate agent who is familiar with your desired location. Research the weather, parking, shopping and attractions in the area.

A trusted real estate agent can “help you evaluate the location and provide information about comparable sales.”

B. “B” is for buying something you love! No Fast Flip Zone! The heyday of property flipping is over. In spite of the above favorable statistics, we advise you to choose second-home investments that you and your family and friends will enjoy.

C. “C” is for having good Mortgage “cents,” and “sense.” Budget for more than a mortgage! Do not forget that a second home, includes the same maintenance and insurance and taxing expenses as your primary residence.

D. “D” is for dealing with the paperwork! We have found that lenders will examine all the same factors in a mortgage on a second residence as they do on a primary residence. The most vital difference is that you will have to qualify for a second-home mortgage on top of any mortgage debt on your primary home.

As you pursue your dream of a second home, keep in mind that Palm State Mortgage Company will, as always, work to find you the best lender. You should be able to offer a nice down-payment, meet the necessary credit standards and debt-to-income requirements. Just as you did for your first home, you will be required to provide documents to verify your income and your assets.