You’ve obviously kept up with current events, and you know that the economy is in a state of flux. In a tough economy, it is important to make concise and effective financial decisions. You need to free your wallet and secure your finances, meeting the needs of you and your family. Of course, a major part of this may be the ability to get a mortgage in a bad economy. When the housing market is down, you may want to consider opting for a private mortgage manager in order to help you make the right financial decision and get your mortgage in the most fair and secure way possible.
Therefore, let the private mortgage managers here at Simply Direct Mortgage show you how to effectively get a mortgage in a bad economy.
An Overview of a Second Mortgage
Before you opt to get a second mortgage, it’s important to understand the nature of a second mortgage and how you may qualify.
The facts regarding a second mortgage are as follows:
- A second mortgage is more than one loan against a property.
- Most loans taken out against a first mortgage are home equity loans.
- Most of these loans can be up to 30 years.
- Second mortgages are often referred to as secure loans.
- A second mortgage can free up your finances if you choose the right lender.
Qualifying for a Second Mortgage
In order to free up your finances with a second mortgage, especially in a bad economy, it is very important to meet the qualifications for getting this second mortgage.
In order to qualify for a second mortgage, you must have the following credentials:
- There must be significant equity in the 1st mortgage.
- This equity is calculated by the difference between what the house is worth, and what you owe on it.
- You must get an appraisal value of the home, which will determine how much the house is worth at that moment.
- You must show your debt-to-income ratio, which is the percent of your income that is used to pay the debt required.
- You can determine your DTI by seeing how much monthly income you have, which is proven by your most recent pay stubs.
- You must have a good credit score.
- You must have a good employment history.
By meeting these credentials, you can qualify for a second mortgage. In order to find out more about second mortgages and how you can qualify, please click here.
Getting a Mortgage in a Bad Economy
The truth about the current economic state is that many first mortgage homes do not undergo foreclosure. In fact, only about 3% of current mortgages are currently undergoing foreclosure.
The most important thing to consider when looking to get a second mortgage is choosing your mortgage lender. In this economy, sometimes banks are simply not reliable. This is why you may want to opt for a private mortgage manager.
If you opt for a private mortgage manager, you will be able to get mortgage managers who offer no closing costs, flexibility with your rates, and a personal touch.
If you would like a complimentary consultation about getting a second mortgage in a bad economy, please call our office at 404-475-6370.
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