Are you considering buying a home in Parker County, Texas? A property as a second home or investment? Acreage for horses? Maybe a waterfront home?
Interest rates have dropped again. I want to share some tips to help you get the best second mortgage rate available.
Perhaps you are looking for a small cottage or cabin on a wooded lot where you can escape for the weekend. Maybe you want to have another home closer to family.
Some of you want to purchase a second home to use as an investment and earn a steady passive income from this investment. Purchasing a property to fix and resale for extra cash? Whatever the reason, a second piece of real estate can be a fantastic avenue for business or pleasure. However, sometimes getting a mortgage on your second home can be a challenge.
Generally, a mortgage lender or bank will have tougher standards for your second home loan than primary home loans. Usually when you are buying a second home your finances will be stretched thinner and you will have less disposable income because you are already paying a mortgage on your primary home. This could mean that your second home mortgage could be harder to get and might have a higher interest rate. Your down payment may be larger than expected.
Here are some tips to keep in mind that will help you get the best mortgage on your second property: Build up your savings. Your mortgage lender will want to be able to see that you have a large amount of savings so that you will have enough to pay for the mortgage even if you were to lose your job or had an unexpected large expense.
Pay off any credit card debt. Lenders may be hesitant to approve your second home mortgage if they see that you have a lot of debt on your credit card. You may have too many debit accounts. They will want to see that you have a low debt to income ratio including all accounts. You need to prove on paper that you will be able to pay back the second loan. I know you plan to have your investment pay for itself. Let’s face reality, you will have extra and unexpected expenses.
One really important rule. Do Not charge any large amounts or open new accounts immediately before or during your application process!! Sure, your planning to purchase appliances or furniture. Wait!! This could cause you to lose any potiential loan. It's not over til you sign on the bottom line. Then you can shop!
Use the first mortgage as a good reference. Since you have always made your payments on time and possibility almost through paying off your first house, you could ask your current mortgage company for the loan. Shop around and compare your options. There are many programs available. Need guidance or answers? Visit us on face book at I will be happy to talk with you.
These are just a few tips to keep in mind before applying for that second mortgage. For more information, about investing in Fort Worth, Weatherford, Aledo, Azle or other properties in Parker County, contact Melissa Jackson by phone or text at 817.243.6177. I would love to chat with you. I'm also available on Face Book. Our team is working with a few great mortgage lenders if you need a referral... just ask.