How to Apply for a Home Loan a Second Time
Applying for a second Home Loan may seem like an arduous task, but it is not a big hassle if you have done your research well. However, applying without having your facts clear can create major problems later on.
The most important thing to do before applying for a second Home Loan is asking yourself why you want the second home. What is your purpose of purchase? If it is for the sake of investment, be sure that you would not be entitled to any recurring costs, as that would charge you heavily in the long run.
Before deciding on the property or land or any kind of home you will be buying, do a thorough check of the locality as to how safe it is, what is the community around is like, if the area or building has an adequate drainage system, etc. Also make sure your second home is also placed well in terms of distance from your work place, proximity to the market, medical facilities, schools and other necessities.
Once you are sure that you want to buy the property and have verified the other factors, do a check of your credit score or record. If you have any pending credits, pay them off. If you are still paying the loan on your first Home Loan, pay the entire amount, so that nothing is pending and you don’t have to burn your savings to pay the new loan. Once all the payment and credits are cleared, you can easily apply for the second Home Loan.
Since it is the second Home Loan, you have the liberty to apply for a pre-approved Home Loan. This means that you get a tentative amount approved before you have decided on the new home. Once the decision is made, the amount is immediately sanctioned. And the remaining process takes less than the normal time.
Here is an infographic that clearly explains the process of applying for a Home Loan for the second time: