Also, make sure to include all the income you have. If you have any equity in any stocks or other financial accounts, make sure to mention that to the broker as well.

The more money you can put down on the loan, the more likely it is that you can get approved. FHA loans usually only require 3-5% down. They are also usually open to working with people with credit problems.

Investigate your credit – You can obtain a free credit report once a year from any one of the three credit reporting agencies (Experian, TransUnion, Equifax). For a small fee you can also purchase your credit (FICO) score. Check for errors and report them immediately. If possible pay off any small bills.

Know your home’s value – You can pay for an appraisal, although you may have to pay for it a second time if you wait too long before actually getting a second mortgage. it's possible to get a ballpark estimate of your home’s worth by going online or watching local newspapers for sales of comparable homes in your neighborhood.

Estimate your equity – The equity in your home is the difference between what your home is worth and what you owe on it. Most lenders will loan you up to 85% of the value of your home based on the total of both the first and second mortgages. Steer clear of lenders who offer to loan you 100% or even more of your home’s value. Mortgaging your home for more than it is worth is an easy way to lose your house.

Shop the lenders – In today’s crowded second mortgage market the borrower has room to negotiate. Start with the institution that made your first mortgage. It may be willing to eliminate some fees from the closing costs. Always get proposals from more than one lender.

Here are our recommended second mortgage lenders online:

Home Equity Loan Companies Online:
(updated )

Are you in the UK?  Visit Our UK Loans Page: UK Lenders