Before you apply for a second mortgage loan, you should be aware of several things. First, the upfront costs can be substantial, and you may not be able to roll them over into the mortgage total. Second, you won't be able to get a loan for more than 90% of your home's value -- and probably less, depending on the state you live in.

When considering a second mortgage loan, don't be coy with the lender; ask them right up front exactly what they need from you, especially if they don't let you know themselves. Then go about the process of providing them with those materials, so that the process will go smoothly.

Before pursuing a second mortgage loan, check your credit rating to be sure it's worth the bother. If there are problems, you can go about cleaning them up as necessary before applying for a loan. This will also give you a chance to check your rating for incorrect entries, which are common.