If you have been considering purchasing a second home, now could be the time to start talking with an American Financing salaried-based mortgage consultant. Interest rates are still historically low, and home prices across the country are relatively affordable for homebuyers. American Financing can help you make an informed decision when buying a second home.
There are many things to consider before diving into having two mortgage payments. First and foremost, all lenders want to make sure you can afford another home loan. Typically, you will need to come up with a down payment of at least 10% to 20% of the home's purchase cost. In addition to meeting all the credit standards for when you first purchased your primary home, most lenders will take into consideration any mortgage debt you currently have on your current home loan. Most importantly, keep in mind how you're going to afford two homes. What is your current debt-to-income (DTI) ratio? Your DTI should be no more than 36% of your monthly pre-tax income; and you'll have to accommodate both home payments within this percentage. If you can't afford both mortgage payments (plus taxes and insurance, etc.) and keep within that maximum 36% ratio, you may want to reduce your debt or consider a lower loan amount.
American Financing does not have an application fee like most lenders, so if you're considering buying a second home, call one of our salaried-based mortgage consultants today to discuss
Make the call today, contact American Financing at (866)750-6551 or complete the online application and let our expert team guide you through buying your dream home.