How to Qualify for a Second Home Loan
- 1). Get your credit reports from AnnualCreditReport.com. You can get your Experian, Equifax and TransUnion reports free, once a year. Apply online (see Resources); it's simple, and you can view the reports instantly. Your credit reports will help you assess whether you qualify for a second home loan.
- 2). Review your reports. Check for errors, and rectify any you find as soon as possible. Contact the credit reporting bureau to do this. Errors affect your credit rating, making getting a second home loan more difficult.
- 3). Get your FICO (Fair Isaac Corp.) score. It's the credit score most home loan lenders use to assess your suitability for credit. Apply online at MyFICO.com. A high FICO score gives you a better chance of qualifying for a second home loan.
- 4). Prepare detailed financial statements. You will need to prove that you can afford a second home loan. Ensure you can afford a sizable down payment. Lenders need to see that you are investing your own money, because homeowners with more invested in a home are less likely to walk away.
- 5). Check online for lenders offering second home loans or get a broker to find you a good lender. Brokers have a selection of lenders and can often find good deals.
- 6). Compile a shortlist of lenders (three or four is good). Call them to get their requirements. Arrange to meet in person: you're more likely to get a favorable response. Ensure you are able to meet the qualifying requirements. Take all your financial statements with you. Check the terms, conditions, fees and charges.
- 7). Select a lender. Apply for your second home loan. Wait for approval.
