Getting a mortgage loan can be a tough decision to make. It's a frustrating thing to have to do, but if you need a second mortgage, it's best to consider all your options. Since you already have gotten your first mortgage, you will have built good credit and be able to get better interest rates on your second mortgage.
Things You Will Needpen and paper
Get a home appraisal. The market value of a home is always fluctuating. Because the mortgage loan will consider the value of your home, you should get an appraisal.
Get a credit check. You will need to have a credit check just like the first mortgage. Have your employment information, banking information and credit ready for inspection. You shouldn't have to worry too much about this step if you go through the same institution because they will already have your information on file.
Explore new lending sources. Just because you have established a business relationship with your current financial institution, doesn't mean you can't get a lower interest rate somewhere else. You should be willing to explore different options to acquire a lower interest rate. Get a review of potential lenders online and determine which has the lowest interest rates.
Negotiate for a lower rate. Since you already have established credibility of repayment, you can now negotiate for a lower interest rate because you are in the lower risk category. Lenders will typically act as if they are not willing to negotiate interest rates, but the dirty secret is the opposite. Don't be afraid to negotiate with a lender, because they will most likely work with you in fear of you going to another business.
Ask about closing costs. Each mortgage loan has closing costs associated with the loan. Depending on the amount you need to borrow, closing costs will fluctuate. Always ask about closing costs and consider them apart of your overall cost of repayment.
Protect yourself from mortgage fraud. Mortgage fraud is always on the rise and people are always looking for a way of making money through crime. Check each companies legitimacy by going to the Better Business Beureau website and reading each complaint made by past customers. Read these complaints with an open mind. Not all complaints should be taken seriously.