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paulaa

Second Mortgage ?

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Hi all,

Well, it has been my dream to purchase a new home. We have been planning for a new home from many years, but we had other financial commitments like student loan, and vehicle loan. Our car loan is not fully paid off yet, but since  that will be over soon, we are thinking of making our dream come true. Now also, we do not have enough savings for a new home, but we could take a mortgage for this. But, since there is a pending mortgage, we are not sure if we would qualify for another mortgage. I was looking online to know more about this, and read a blog, http://www.albertamortgagecentre.com/qualifying-for-your-first-mortgage/, where they are discussing in detail about the qualifications required. We have good credit score, and we do pay all our monthly bills and installments on time. I wanted to know, we could apply for a second mortgage right ? Should it be with the same mortgage broker? Please help me with this.

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It is a REALLY bad idea to take out a loan for the down payment.  The chances of them approving a second mortgage when you don't even have the first one yet is pretty much zero.

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If you are a first time homebuyer, there are generally many programs that help with down payment assistance.  The programs are generally state programs, so you should google them according to your state.  Some of the ones availalble in my state are grants, meaning you can get the money for a down payment with no obligation to repay it, some stipulate you don't repay as long as you are in your home for X years and some are a type of "loan", but aren't considered a second mortgage and potentially have a stay on them until the home is sold and they recoup as part of closing costs or sale proceeds.  You may want to look into some of those.  Your lender may even know of some that they work with often.

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