This is all so foreign to me

[MikeJaquish]

Originally Posted by NY Annie

I did just what you are doing - only we didn't see the house until after we'd purchased it. You are looking in an area that is way more remote than where we bought but I see lots of similarities.

For starters, get yourself a pre-qual from a lender. Find out if the lender has any exclusions: in our area it was mobile homes. Not only could the mobile not be the main house, if one was on the land, it had to be removed. We had found one property with a main house and an old mobile used as storage. It had to be removed per lender.

Then, now that you know how much you qualify for, decide how much you are truly willing to finance. Do NOT leave yourself house poor or you will regret it.

And finally, Buyer's agent. There are good ones out there. Find one who is willing and has experience to work with an out-of-state buyer where all documentation will be done via fax/mail. In TN, there is a law that a faxed document signature counts as an original signature. That was a big plus for us.

Get pictures of the properties you are interested in - inside, outside, upside down. Pictures tell a story.

Good advice.

I would only say there is little reason to ever use a fax, with easy-peasy electronic signatures providing quick solutions and no loss of quality due to repetitive faxing/scanning.
Going interstate, with forms variations means that it is more important than ever to be able to clearly read what you are agreeing to.

[beachmouse]

Originally Posted by chet everett

Wow that is very remote -- I suspect lenders will need to specialize in that sort of think, and the low cost MIGHT make it very hard to borrow at all -- most lenders have a floor below which they simply will not lend as the profit is just not there.

I agree you might very have to look for a specialized lender for that kind of home. When you're talking seriously off the utilities grid and also probably not covered by fire protection service, it'll make a lot of lenders run and hide.

[mathjak107]

one more thing keep in mind.. when you finally make that 2nd home your primary the tax laws changed last year and now your capital gains excusion is pro-rated and reduced by every year you own the 2nd home prior to making it a primary.

long term it may not matter but just something to be aware of. im not an accountant so double check me but i believe as an example you own the home 10 years but it wasnt a primary for 5 of those years so you would get 1/2 the capital gains exclusion which would be 125,000 out of the 250,000 if your single.


the more in advance you buy this 2nd home the more you end up being penalized