The Role of the Loan Officer
You have done your research and made the decision,
a second mortgage is the answer to your need for cash.
You will finally be able to put in that new bathroom!
As you begin the application process, you are understandably
a little nervous. What type of paperwork will there
be? What documents do you need to prove residence, income
and employment? How will the second mortgage loan affect,
if at all, your original mortgage loan and vice versa?
Will there be tax advantages to taking out a second
mortgage loan? How much will your monthly payment be
on the new mortgage loan? Should you get an adjustable
interest rate or go with one that is fixed? How do current
interest rates seem to be moving, and can a big change
be anticipated in the future?
Which is better for you, a home equity line of credit
or a traditional second mortgage loan? If you do choose
a home equity line of credit, what are the lending institution’s
policies regarding minimum withdrawals and monthly payment
Your loan officer is there to help. He or she is familiar
with the mortgage loan business and the financial industry
in general, and will be happy to give you the benefit
of their expertise and experience as they guide your
through the application process for your second mortgage
The loan officer knows all the details about your new
mortgage, so do not be afraid to ask any questions you
may have. Remember, putting your family home on the
line to guarantee repayment of a second mortgage means
you must be serious about the attendant repayment obligations,
and you must understand any terms to which you agree.