While financing your home you’ll be able to find many different options and here we’re going to talk about second mortgages. You shouldn’t have to take out a home equity loan if you can take out a second mortgage, and just because your credit isn’t the best doesn’t mean you can’t get one. Here we’re going to talk about how difficult it can be to get one, how to use a mortgage broker to get the most out of your terms and what to use it for.
What Affects Your Chances to Get a Second Mortgage?
There are three things that will count against or for you when you’re trying to get a second mortgage:
FICO: Your FICO or credit score is one of the main indicators of what kind of borrower you are. This means that you’re going to need a good credit score to get a second mortgage. If you have anything below 600 you’re going to want to consider credit repair or credit building before you apply. You may be able to get your financing but it could be at terms that just don’t fit with what you need.
Income: Your income is important to making sure that you can repay your loan. If you’re self or seasonally employed you’re going to need a Toronto mortgage broker to help you get the best mortgage possible. We’ll help you get it right the first time!
Borrowing History: If you’ve borrowed against your home before (this is technically your fifth mortgage for example), recently or if you’ve had slow pays and no pays on your record you’ll definitely want to make sure that you get a mortgage broker on your side to get the right terms.
Why Are Mortgages Hard to Get in the First Place?
Mortgages, and most financing for that matter, can be hard to get. Lenders don’t want to take a risk that they won’t be able to stretch out the life of the loan and get a lot of interest back over time. They don’t like lending to people who pay off their debts quickly, and they don’t want to lend to people who pay off their debts so slowly it doesn’t make a dent. Most of us fall more towards one side or the other and it can be hard to get a second mortgage. This is when you need to think about getting to work with one of our Toronto mortgage brokers.
What Does a Mortgage Broker Do?
Mortgage brokers will not only help you get a good second mortgage, but they’ll help you look over everything that you can do to improve your credit and help you know if now is the time to borrow. Everyone has their own unique situation, and we know that there are no “one size fits all” solutions with financing. Why work with one lender when you can work with several different ones that will compete to give you the best deal?
Let us help you find the right loan, at the right rate and help you save money!