BUYING A SECOND PROPERTY WITH HOME EQUITY:
How Can I Use My Equity To Buy Another Property?
Buying a second property is a dream come true for many home buyers or investors. If you own a property that has equity, you can put your own house equity to work. Like a first-time home purchase, a second property also requires a down payment. Many home buyers or investors consider using their home equity as seed money for funding another property.
EASY THREE STEP For Getting a Property Equity Loan to Buy Your Second Property!
STEP 1. Determine How Much Down Payment You Need For the Another Property
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Before using your equity to buy a second property, determine how much you need for the down payment and closing costs. Next, determine how much you have in equity. To get the home equity you can refinance the existing mortgage with cash out option or take a second mortgage as Home Equity or Heloc. There are many loan options, programs, and scenarios. It is best to GET FREE NO OBLIGATION CONSULTAION to ensure your specific goals are met.
STEP 2. When Ready, Prepare Your Documents and Apply
You’ll need to qualify for a home equity loan to access the cash. The process of getting a Home Equity loan or Heloc is similar how you did your first loan. You will need to provide similar documents to qualify. The home equity loans are quick to close and require much less closing cost compare to a first mortgage.
STEP 3. Property Appraisal and Approval
Next, an appraisal (evaluation) of your property will be ordered to determine the current value. Once the appraisal (evaluation) report is received, you can close quickly, and your funds will be disbursed to you in one lump sum at the closing.
Ready To Buy Your Second Property?
If you’re thinking of buying a second property to live in or investing for additional income a home equity loan is one of the financing options to explore.
Using home equity from the property you live in to buy another home is possible but consider your options carefully. For example, adding a mortgage means more financial obligation, and because mortgages are secured, you put your home at risk. Before borrowing money to buy another home, make sure you can easily afford all mortgages, so you don’t put any properties in jeopardy of foreclosure
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before starting your search for your second property and plan to use equity from your current home.
