Have you considered buying a new property, going on a trip or remodelling your home? All this is possible thanks to a second mortgage. Yes, tough you do not believe it. Banks can lend you another loan, even when you continue to pay the first one. To grant you, one the institutions request different requirements; for example, your capacity and credit history. If you want to know more about the subject, we tell you some considerations that you should take into account before deciding on this option.

You should know that it is possible to access a second mortgage, but the conditions are different. Institutions such as Infonavit and Fovissste only grant you the next credit when you finish paying the first one. In the case of some banks, it is different; Well, they can give you a second loan, as long as you have sufficient solvency.

Existing types of second credits
o Second direct mortgage: The second direct loan has a procedure similar to the one you carry out when you request the first. You make an application and the bank will analyze your credit history, your ability to pay and work references. However, you should know that these filters are stricter; since you need to verify that even with a current loan you can afford the payment of another. Usually, banks will lend you between 70% and 80% of the value of your property. This loan is intended only to buy a new or used second home.

o Liquidity credit or guarantee: This type of loan is similar to that requested in cash in banks, with the difference that you must put a property as guarantee. The condition is that the property that you will mortgage does not have any kind of debt. They lend you the money for any circumstance in which you need it, freely. In this modality, the institutions lend you between 35% to 50% of the value of the house.

Advantage
The hard money second mortgage allows you to buy a second home for vacations or to improve your lifestyle; but it also allows you to get out of economic unforeseen events. Even boost a business, thanks to the free financing offered by liquidity credits.

Disadvantages
It is clear that the biggest disadvantage is that you will have to adjust your expenses, to maintain a clean payment history. Also, if you put your house in guarantee and do not cover the monthly payments, you could lose your property.

Your heritage is very important; Therefore, if you decide to apply for a second loan or mortgage your property, analyse before deciding. Never allocate more than 30% of your salary to pay for two loans. Do not forget that the best decision is the one that suits your possibilities. Don't fill yourself with unpayable debts.

Can I request a second mortgage
However, the bank will not give us that second mortgage if we are not very solvent and have sufficient capacity to repay two loans at the same time. And to verify that our economic situation is good, the entity will require us to meet the following requirements:

• We must earn a good salary: This should allow us to face the installments of two credits, in addition to those of other possible debts that we have in force. In general, they will not approve our request if we need to dedicate more than 35% of our net monthly salary to the payment of those monthly payments.:

• We will need to have a good sum of money saved Mortgages to buy a second home cover up to 60% or 70% of the price of the property. Consequently, we must have savings to pay the remaining percentage plus what the expenses associated with the sale cost us.

In addition, as is logical, it will require us to have a stable employment situation, that is, that we have been working for a few years and that we have an indefinite contract.