When we provide a loan in second priority to your existing mortgage, we require certain details about your current mortgage. Here’s why this information is important to our lending process.
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Confirm Loan-to-Value (LTV): Knowing the balance of your first mortgage allows us to calculate the LTV ratio accurately, helping us assess risk and ensure the loan meets our underwriting standards.
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Verify Our Security Position: Since our loan is in second priority, we need to confirm the exact balance on the first mortgage to understand our position in case of default or sale.
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Order Balance Statements: To confirm the balance, we may directly request a balance statement from your first mortgage lender. Most financial institutions require the account number of the existing mortgage for this process, so we ask for a recent mortgage account statement showing the account number.