Buy a second home with a second mortgagethehomemortgage
Want to buy a new home? Find out how you can finance it with a second mortgage!
People are buying another home for various purposes these days. Regardless of the purpose, the financing is still quite uncertain. A lot of us have to crush our dreams of owning a summer house because we don’t know where to get the financing from. Second mortgages are a great way to finance your home with ease!
Call Leading Edge Mortgage Experts to know your options!
What is a second mortgage?
Second mortgages, in layman terms, are the second loan you take against your primary residence. It is taken out against the remaining equity in your home. As you keep paying off your first mortgage, the equity in your home increases allowing you to borrow more. If you have made any additions which increase the value of your home, this increases the value you can borrow.
What are the requirements?
- Property to borrow against
- Equity in your home
- Good credit score
- Decent debt to service ratio on
Every mortgage has the same requirements. A second mortgage may require a little more precision in these requirements as it poses a higher risk to the lender. The second mortgage lender will only receive the benefits from the sale of the home after the first mortgage lender. The requirements are scrutinized with a sharper eye for the same reason.
It is important to make sure you have an excellent credit score and your income is more than the debt payments you make during the month. You should get your property appraised to understand the amount of equity you have in your home. Keep related property documents and other income statements ready for checking. Make sure they are error-free and up to date.
Contact Leading Edge Mortgage Experts to get detailed information about Second Mortgages Mississauga & Burlington!