Review Your Budget
Just like when you bought your first home, you’ll want to reassess your finances to make sure you’re fully prepared to finance your second home. In addition to your current debt-to-income ratio, there are other factors to consider, such as how much you expect to sell your current home for, if you intend to do so. You can use our mortgage calculators to help you estimate your monthly payments on your new home.
Applying for Another Home Mortgage
As a homeowner, you already have a mortgage for your primary home. This will likely have an impact on the interest rate of your next home’s mortgage and the amount of your required down payment. Before applying for a mortgage for your second home, ask yourself the following questions:
What are my plans for my new home?
You might be upgrading your current home to a larger space, or downgrading to a smaller home if the kids have left the nest. Think about whether you’ll be living in this home full-time, or if it will only be part-time to accommodate a new work schedule.
What are my plans for my current home?
Think about whether or not you can handle a mortgage for your current home as well as for your new one. Or, do you plan on using the equity in your home to help you purchase the new home? If you’re thinking of selling your home, decide whether you will do so before or after you purchase the new house, as this may affect factors such as your down payment.
How has the market changed since I bought my first home?
Whether you bought your home five years ago or fifteen, there have likely been some significant changes in the housing market. If you’re selling your current property, make sure you know its current worth. You’ll want to look at current trends in the market where you’re looking to buy, too.
What type of loan should I get?
There are dozens of mortgage loan options for you to consider when financing your second home. Your current finances, long-term goals, and certain other factors, such as veteran status, will affect which options are available to you. Contact one of our loan specialists to help determine which home loan will meet your needs best.
Homebuying Made Easier
J.G. Wentworth provides the support you need to purchase your next home with confidence. We offer low mortgage rates to help you save money on your monthly payments. Our quick and convenient application process makes it easy to get started. As a direct lender, we pride ourselves on providing on-time loan turnarounds, getting you on the path to getting a mortgage for your second home faster.
Contact us today to ask any unanswered questions or to get a rate quote for your next home mortgage.