Financing Info By Frank

Frank is a Mortgage broker many of my cutsomers have used. He is good, competetive and communicates extremely well with all involved parties during a Transaction. I asked Frank to contribute some Finacing facts to my blog every so often.

Here is Frank:
Second Homes
In order to qualify for a second home loan there are a few parameters to look at. Lenders look at three main factors :Capacity, Credit, and Collateral.
Capacity
One needs to show the income or capacity to repay the loan. Present mortgage, credit debts such as credit cards, car loans and the new mortgage for the second home must not exceed 36% of your income. There is some flexibility if your credit and liquid assets are strong compensating factors. Also one needs to show assets sufficient for the down payment as well as monthly reserves of at least 3 months.
Credit
The credit score requirements on most second home loans are at a minimum of 680. After checking all 3 credit repositories the lender drops the high and the low score and uses the middle score. Apart from the score being good there must not be any recent lates ,especially not on your current mortgage. The higher the score the better the terms.
Collateral
If the property your are buying is in fairly good shape and has no outstanding violations this should not be a problem.
An appraisal report will indicate most of what the property entails and give the bank the collateral it needs. The lender requires a condo questionnaire form from the condo association to find out if there is any pending litigation or poor mismanagement that could cause the values to be affected.
The lenders do have plenty of money to lend and will do so gladly if the borrower qualifies correctly.
Frank Lazcos is a mortgage broker with Equity Option. If you have any questions regarding financing please give Frank a call: 305-525-258
or visit his website: Click here