The second home mortgage lender sees if you have maintained decent cash flow before accepting your second home mortgage application. He may ask you for a cash flow statement for the property and your rental history. He will do a second appraisal of the property that is used as collateral.
There are loans that require you to pay off in one year. Therefore, you should choose a second home mortgage lender in Elk Grove that offers the best deal for you. If it is a short-term loan, your monthly payments could skyrocket, as you would have to pay the full amount in a short period of time.
Most mortgage companies charge a fee called "points" for loaning you the money. Typically, one point equals one percent of the money borrowed. However, the number of points with each company is not the same. Many second home mortgage lenders are restricted by the number of points they could charge by statutory law. But it is your duty to ensure that the amount of points that you will be charged is on paper, so that the deal is fair.
A second home mortgage lender will be stricter on loan applications compared to conventional loan applications. This is because a second home buyer's finances are not so easily obtained. Points charged are a quarter or half a point higher than normal rates. The typical perception of a second home owner is that he is richer than a single home buyer.