Purchasing a Lakefront Property: A Buyer's Guide

by Kevin Smith Author

Having a peaceful and quiet environment is just one of the many benefits of living near a large body of water. It's why many people search for luxury lakefront homes for sale in Palm Beach. If you're fortunate enough to find an affordable property, there are some things to consider before making a purchase. Read on to learn about them.

Upfront Costs and Ongoing Expenses

Upfront costs refer to the expenses charged to you before you sign the paperwork. They include:

· Down Payment - Usually 10 to 20% of the total price of the home, it serves as proof that you can afford the property.

· Inspection - This is done to help you make an informed purchase. Common issues like wall cracks and leaks will be checked by an expert.

· Closing Costs - These include the fees for the attorney's signature, homeowner's insurance, and other documentation.

Ongoing expenses, on the other hand, are what you pay for once you're already living in the house. The principal, interest, and property taxes are just 3 examples. However, you also have to spend money on maintenance, insurance, and utilities.

Mortgage

After you settle the down payment, the remaining 80 to 90% of the total cost will come from the mortgage. It's a legal agreement between you and a bank that's often secured by collateral. In most cases, when you can no longer pay for the loan, your lender will have the right to take your property away from you.

It's not easy to get approved for a mortgage. It entails proving that you can really afford to pay your lenders back. They're going to ask about your current debts, monthly income, and statement of assets. These financial documents will give them an idea of where you're going to get the funds for your monthly payments.

Real Estate Agent

Find a qualified real estate agent who specializes in lakefront properties. They should walk you through the process of buying a home and discuss the pros and cons of living in a secluded environment.

Additionally, they're responsible for letting you know whether there are restrictions in the area. Some lakeshore homes are located in places where fishing, motor boating, and swimming aren't allowed.

Safety

Luxury lakefront houses can draw the attention of burglars. It's best to consider whether the property that you want has security features installed, such as alarms, cameras, and high-quality door locks.

Purchasing luxury lakefront homes for sale in Palm Beach also means that it's harder to contact neighbors who can help you in case of emergencies. It's possible to have a spotty phone signal, too. However, escaping the hustle and bustle of the city and waking up to the calming sound of water crashing against the shore make owning the property worth it.