Getting a second mortgage loan can become a big problem if you do not have proper documents. Moreover, there is a long list of documents essential and mandatory to get the approval of the loan. Nevertheless, you do not get scared collecting some bunch of papers. It is not a big problem, if you know what you are looking for. Here we will give you the complete checklist required for second mortgage loans. Read further to know more about the second mortgage loans documents.
Here is the checklist of documents and information required for second mortgage loans:
- Income proof: Every lender asks for the document related to your income proof. Your income will decide the eligibility for the amount of your second mortgage loan. Income proof documents of business owners, self-employed, and those in service are different and may vary from region to region. Thus, check with your lender in which category you are.
- Address proof: It is extremely important for your lender. On the other hand, in some cases, they may ask for one more option of the address proof and contact number.
- Identification proof: Identification proofs are the documents like passports. You need to attach them with your documents, as it is must.
- Tax returns for the last three years (terms may vary from region to region): Most of the lenders demand for three years of income tax returns. In some places, you may require presenting less or more.
- Tax forms: Every country has different tax forms required to present when applying for a second mortgage loan. Check with your agent to present the right tax forms to your lender.
- Home owner’s insurance: Homeowner’s insurance will help your lender verify the coverage that you have on your home.
- Title insurance: Lender will check the title of the property to whom does it belong to and for that, he will need the title insurance.
- Credit scores and credit reports: These are one of the most important documents when it comes to loan. If your credit score or credit report is bad and shows a bad history, then you will be disqualified of getting the loan. Therefore, always maintain your credit report and credit score in positive. Thereby, to do so, do not delay the payments of your lenders.
- Appraisal: Your vendor might want to know the current appraisal of the house and will ask you how much your house values in current time.
- Guarantor: You will have to bring one guarantor who will sign the documents and will guarantee to pay your loan. In case, you fail to do so. If you have good past records, you will not face problems in finding one.
- Legal history: Well, if you have received a legal-statement for your earlier loans or you have had a criminal records, lender might not be interested in giving you the loan. Thus, keep your legal sides always clean.
- Your total asset value: You will have to present the details of the following
- Your saving accounts
- Stock value
- Bonds values
- Mutual funds
- Retirement accounts
- Other real estate properties you have
- Your current mortgage: Your lender will demand you the documents of the following things
- Home equity loans document, if you have any.
- Your credit cards information and records.
- If you are under a debt of any auto loans or student’s loan.
Once you collect all these important documents, your checklist is complete. Now, you can go into your creditor’s office with confidence and getting a second mortgage loan shall not be a problem for you.