The entire application process for home equity line of credit is mentioned below:
Before applying for a loan, keep the following things ready:
* Proof of employment
* Personal Information such as the phone number, address, date of birth and name.
* Information of expense and income
* The amount that you want to borrow
* The current market value of your home.
* Updated amount of the loan.
If you want to take a home equity line of credit, then you should be ready to provide access to the information regarding car loan, credit card, or student loan.
Applying for the home equity
Once you have gathered all the information that you need for the pre-application process, then you need to move to the next step which is applying for the loan. Below mentioned are all the steps now:
1- Contact different lenders
The fees and rates of adifferent home equity line of credit providers will be different, and you should compare the available options to land with the perfect deal.
2- Compare the offers
Once you have gathered a quotation from three or more lenders, then you can see them carefully and read out the terms and conditions. Select the one that suits you perfectly.
3- Application online
Once you have decided about the lender, the next step is to fill out the application form. There are many banks which require anonline application for different loans. The online application will always be stored in your cloud too.
4- Property Evaluation
Many lenders will want to have an updated proof of the market value of theproperty. There will be an inspection too before the approving of this loan.
If once, the loan application is accepted, then some further information will be required, and the lender will carry forward the discussion and process.
Question- Answer Session
There are some queries that you must solve from the lender before committing to a home equity line of credit such as
* Ask the lender if there is an introductory rate and that how long will it last?
* Do make sure to read the terms and conditions clearly and be sure about the interest rate applied to the loan amount.
*You should know about the time of draw period.
* Is there any limit for the minimum amount to be drawn whenever the customer wants to access line of credit? Ø Are there no large one- time payments at the end of loan term?
So, it can be concluded that the home equity line of credit is a great relief in the hour of need. So, thecustomer shall take care of all the information and documents that must be ready for him before the application for theloan is passed on. Do compare different lenders and their terms and conditions. Choose the one which can connect to you and which has the lowest interest rate with feasible terms and conditions.