Are you thinking of buying a cabin in Minnesota? If so, there are a few things you’ll want to take into consideration. For example, how much can you afford to spend? What kind of features are important to you? And where is the best place to buy a cabin in Minnesota? To make sure that buying a cabin in Minnesota is the right move for you, here are some aspects to think about before taking the plunge.
Features
When you’re searching for your perfect cabin, there are a few key features to keep in mind. First, think about how you want to use the cabin. If you’re mostly looking for a place to relax and get away from it all, you’ll want to find a cabin with a great view and plenty of privacy. If you’re hoping to use the cabin as a rental property, on the other hand, you’ll want to make sure it’s located in a popular vacation destination and has amenities that will appeal to renters. You’ll want to make sure that the cabin is large enough to comfortably accommodate your family and all of your belongings. Another important consideration is the amenities that are included with the cabin. Things like a fireplace, a hot tub, or a private dock can be great additions to your Minnesota cabin.
Location in the Land of 10,000 (or more) Lakes
Once you’ve decided what you’re looking for in a cabin, it’s time to start shopping around. The best place to buy a cabin in Minnesota will vary depending on your budget and needs, but here are a few places to get you started:
–The North Shore: This beautiful stretch of Lake Superior shoreline is one of the most popular tourist destinations in Minnesota. As such, it’s home to a wide variety of cabin styles and prices. Whether you’re looking for a rustic log cabin or a luxurious lakeside property, you’re sure to find something that suits your needs on the North Shore.
–The Twin Cities: If you’re looking for a more urban setting, the Twin Cities might be the perfect place to buy your cabin. With a wide selection of cabins to choose from, as well as plenty of dining and entertainment options, the Twin Cities offer something for everyone.
–The Iron Range: For those who want to get away from it all, the Iron Range is the perfect place to buy a cabin. With its miles of forested wilderness and countless recreational opportunities, the Iron Range is a true outdoor paradise. And, with many cabins priced below $100,000, it’s an affordable option for buyers on a budget.
TIP: If you haven’t already found a favorite lake or town, consider spending weekends at rentals in different areas.
Have you planned for it financially?
If you’re thinking about buying a cabin in Minnesota, one of the first things you should do is get pre-approved for a second mortgage. This will give you an idea of how much you can afford to spend on your cabin and help to make the buying process go more smoothly. Although the application process is the same as for a primary residence, the financial requirements are higher for a second home. Here are the basic requirements for getting a mortgage on a second home.
- Sufficient income for your primary and second home – You can buy a second home while paying the mortgage on your current home providing you have sufficient monthly income to cover both properties’ expenses and your other monthly debt obligations. Depending on where your cabin is located, you may need flood insurance, or to contribute to community or homeowner’s association fees.
- Down payment and PMI – You can put down as little as 10% on a second home, but you’ll have to pay Private Mortgage Insurance (PMI) if you put down less than 20%.
- Cash reserves-According to Fairway Independent Mortgage Home.com, “You will need cash reserves — assets that could cover your mortgage payment if your income drops — for a second home mortgage, according to Martin. However, the reserves do not have to be liquid (readily available) in a checking or savings account. Funds in a 401k or another retirement plan also count toward your reserves.”
April Ranallo – Your Minnesota Cabin Connection
Without accurate planning, you run the risk that your amazing cabin in Minnesota becomes a weekend resentment.
So, if you want to find the perfect place that suits you, your family, and your finances, reach out to me to get started on your pre-approval process. I can help you plan out your needs and wants when it comes to a cabin and connect you with a Realtor that will assist you in narrowing down the available locations that are perfect for what you want, and then seek out that place that was meant for you.