Buying a second home is a dream come true for many Americans. It's a great way to relax and refresh yourself by creating the perfect getaway tailored exactly to your needs and wants.

However, it's also a big decision, and there's a lot to consider before taking the plunge. Here are the 4 top decisions to make before going shopping for homes for sale with your real estate agent.

What's Your Budget?

Deciding on a budget for your vacation home isn't as simple as knowing how much you can spend on the house itself or how large your down payment is. It also means accounting for the regular and irregular expenses of home ownership.

Where Should You Buy?

Many people have a location in mind when start planning to buy a second home. But, you may find that what appeals to you as a casual vacationer may not be the same as what you want if you establish a permanent presence. 

In addition, considering this question after working on your vacation home budget may convince you to look at less (or even more) expensive locations that can give you a good value for what you can afford. 

Will you Rent it Out?

The decision to keep the vacation house all to yourself or to earn a little extra income by renting it out is a choice that will affect many other buying factors. For example, if you want to rent it to other vacationers, you may need to look for something more conveniently located, with more bedrooms, or nearer to big attractions.

However, buying solely to enjoy the house on your own means less income to help for for the monthly expenses.  There is no right or wrong to this question, but taking the time to look into whether you want to become a landlord or not is key to finding the right property. 

What Financing Options are There?

Vacation or second homes may have different financial requirements than your first home. While mortgage lenders generally look at the same factors, keep in mind that you will need to qualify for a second mortgage while still carrying the first one. 

You may also need to save up more for a larger down payment (10%, 20%, or more) than with a traditional first home. Because this will not be your primary home, you'll also need to investigate different insurance requirements and loan options. 

By taking the time to answer these 4 questions before you meet with a real estate agent and fall in love with a house, you can help ensure you find the perfect place to relax and enjoy the fruits of your labors.