To apply for a home equity loan, you'll need to gather some information about your finances and your home, then submit an application, which can be done in person, or online with an easy-to-use app. To get started, you’ll want to determine the current value of the equity in your home, verify your credit score, and secure proof of income. If you have questions, a quick conversation with an experienced credit union mortgage loan officer will provide the guidance you need.
Step 1. Determine your home equity by subtracting the amount you owe on your mortgage from the current market value of your home.
Step 2. Review your credit report. You can get your credit report, score, and history online from the three major credit reporting agencies (Equifax, Experian, and TransUnion). Lenders typically look for a score of 620 or higher, but some may prefer 680 or better.
Step 3. Gather necessary documentation:
Step 4. Choose a lender and submit your application. Your credit union is a local lending leader and has knowledgeable, experienced and friendly mortgage loan officers waiting to assist you. Plus, your credit union has the competitive rates, low fees, and flexible loan terms to fit your needs.
Step 5. Anticipate verification of the information you provided, including your income, debts, and the value of your home. An appraisal may be required to determine the current market value of your home.
Step 6. Receive a loan estimate outlining the loan terms and closing costs. If you accept the terms, you'll sign the loan documents and pay the closing costs.
Step 7. Access your funds through a lump sum once the loan is closed. You'll typically repay the loan in monthly installments until the loan is paid in full.
At anytime in the process, if you have questions or seek advice on how best to proceed, a call to your credit union mortgage loan officer will prove to be your best resource.