Tips On Getting a Second Mortgage
Currently all sectors of the mortgage industry are highly
competitive. This makes the process of getting a second mortgage
fairly quick and simple. Still, there are some things you can do
which will make the task even easier.
Investigate your credit – You can obtain a free credit
report once a year from any one of the three credit reporting
agencies (Experian, TransUnion, Equifax). For a small fee you
can also purchase your credit (FICO) score. Check for errors and
report them immediately. If possible pay off any small bills.
Know your home’s value – You can pay for an appraisal,
although you may have to pay for it a second time if you wait
too long before actually getting a second mortgage. It’s
possible to get a ballpark estimate of your home’s worth by
going online or watching local newspapers for sales of
comparable homes in your neighborhood.
Estimate your equity – The equity in your home is the
difference between what your home is worth and what you owe on
it. Most lenders will loan you up to 85% of the value of your
home based on the total of both the first and second mortgages.
Steer clear of lenders who offer to loan you 100% or even more
of your home’s value. Mortgaging your home for more than it is
worth is an easy way to lose your house.
Shop the lenders – In today’s crowded second mortgage
market the borrower has room to negotiate. Start with the
institution that made your first mortgage. It may be willing to
eliminate some fees from the closing costs. Always get proposals
from more than one lender.Here are our recommended
second mortgage lenders online:
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