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2nd Home Loan

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mborgens
Valued Member

2nd Home Loan

We absolutely fell into our first home. So, I have limited knowledge except that you need to initial here and sign on this line.

I'm I heard it is harder to obtain loan for a second home, true? What if we have 20% down, 800+ FICO scores, and almost no debt? Should we look into pre-approval, and if we do, are pre-approvals time limited?
Message 1 of 4
3 REPLIES 3
ShanetheMortgageMan
Super Contributor

Re: 2nd Home Loan


mborgens wrote:
We absolutely fell into our first home. So, I have limited knowledge except that you need to initial here and sign on this line.

I'm I heard it is harder to obtain loan for a second home, true? What if we have 20% down, 800+ FICO scores, and almost no debt? Should we look into pre-approval, and if we do, are pre-approvals time limited?

Second homes & investment properties inheritantly carry a higher risk since you are not going to be occupying them, so if you were to ever default on either your primary residence or a home you are not living in, most likely you are going to choose the one you are not living in.
 
If you are talking about buying a new primary residence (technically you are buying a second home) and would leave your current residence to be a rental or an actual 2nd/vacation home, then qualifying for the new home would be very similar to when you qualified for your current home.
 
As long as your debt to income ratio qualifies, then with 20% down & 800+ scores you should have no problem.
 
Which one of the above is your situation going to be though?
Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 2 of 4
mborgens
Valued Member

Re: 2nd Home Loan

We have been going back and forth, but will probably stay in our current house. Just a side note, we owe about 25K on our house as our only bill.

I spoke with a home seller today, and he said he only wanted people who were pre-approved.
Message 3 of 4
ShanetheMortgageMan
Super Contributor

Re: 2nd Home Loan


mborgens wrote:
We have been going back and forth, but will probably stay in our current house. Just a side note, we owe about 25K on our house as our only bill.

I spoke with a home seller today, and he said he only wanted people who were pre-approved.

It's pretty common for a seller to only want to work with buyers who are pre-approved.  The pre-approval usually is good for 90-120 days without needing your credit to be rechecked.  You will probably need to provide updated bank statements & paycheck stubs along the way though.
Free Mortgage Advice & Pre-Approvals (FHA, VA, USDA, Fannie, Freddie, Non-Prime, Construction, Renovation/Rehab, Commercial) since 2002
Located in Southern California and lending in all 50 states
Message 4 of 4
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