How to File a Second Mortgage Application

If you are a homeowner and looking to tap into your home’s equity, you will need to file a second mortgage application. Your home is your greatest investment and is your greatest stream of potential income. To begin your process, you must first determine if your level of need is worth tapping into the equity. If you have determined that the need is there, be sure that you can afford the additional payments.

The Lender

Second mortgages are not hard to acquire, but the process involves higher fees and closing costs. This is why it is important that you determine your need and repayment ability because these are items that the lender will focus on in reviewing your application. Your lender will review the history on your existing mortgage. Understand that, when you are applying for a second mortgage, the lender will now view you as higher risk. This is due to there being two mortgages attached to one property. Should you default on payments, the mortgage lender for the first mortgage will be dissolved first. The lender will look at the value of your home (completed by appraisal), your repayment ability and credit history to determine whether to approve the second mortgage.

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