Preparing to Apply
Applying for a second mortgage loan often proves less
complicated than the application process required for
an original mortgage loan. However, most lending institutions
will still require certain information and documentation
before you can be approved.
The most important piece of documentation is your driver’s
license, passport, state identification card or other
acceptable form of photo identification. Also, have
ready a list of any street addresses at which you have
lived during the past two years.
You will also likely need to provide proof of income
and employment, such as recent pay stubs or a court
order for child support. While the documentation requirements
for a second mortgage loan can sometimes be less stringent,
providing these items if available will make the process
go more smoothly and will also ensure that you receive
the most favorable rate possible.
Another important part of the application process is
the appraisal of the property. Since the amount you
can borrow will be partly based on your home’s
current value, you and the lending institution need
to know around how much your home is worth in today’s
market. Many home owners are surprised and pleased by
how much their home’s value has appreciated beyond
the date of purchase.
Your loan officer will outline for you the specific
requirements of your lending institution. However, if
you are the type of person who does not habitually keep
good records, you should prepare for the application
process beforehand by starting to assemble the necessary
documents a few months prior to taking our your loan.
That way, you will not be caught unaware without the
paperwork you need, and can begin shopping for a lender