- 1). Gather the paperwork that you'll use to prove to your lender that you are financially able to make the additional payments that a second mortgage loan would bring. Make copies of these papers, which include your last two federal income tax returns, credit-card payments, other loan statements, last two paychecks and savings and checking account statements. You want to show your lender that your monthly debt obligations, including the estimated value of your new mortgage payments, is less than 36 percent of your gross monthly income.
- 2). Call your mortgage lender and explain that you are interested in taking out a second mortgage loan. Supply the basic information that your lender needs to start the process: your property address, Social Security number of yourself and any co-borrower, and your estimated gross monthly income.
- 3). Give your lender permission to run your credit. This will supply your lender or bank with your three-digit score, also known as a FICO score, a single number that shows how wise you've been with your money in the past. A score under 620 is considered weak, and may give your lender second thoughts about providing you with a second mortgage.
- 4). Send your lender the copies you made in Step 1. Your lender will use this to help determine if you can make your second mortgage payments. If your annual income is high enough, and if you have a history of paying your first mortgage payments on time, your lender might be willing to overlook a borderline credit score.
- 5). Accept your lender's second mortgage offer if the bank or lender approves your request for a new loan. Your lender may offer you a loan with a higher interest rate than you expected. Second mortgage loans always come with higher rates than do first mortgage loans. However, your rate may be even higher if your credit is weak. You will then have to decide if the second loan still makes financial sense. You can also shop around with other lenders--you are not required to work with the servicer of your first loan--to see if you can find one willing to give you a second mortgage with a lower interest rate.
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