What is a Home Equity loan?
A home equity loan is a loan you use for planned or unplanned expenses. This is a second mortgage, meaning a debt that is secured by your property. This loan allows you to borrow against your home’s value, minus the amount of any outstanding mortgages on the property. You’ll potentially pay less interest than you would on a personal loan, because this loan is secured by your home.
How to get a Home Equity Loan?
- Credit Check.
- Secure employment with a solid income record. – Demonstrate the ability to repay.
- Debt-to-income ratio – “housing expense ratio” of no more than 36% (?)
- Home appraisal to establish the fair market value of your property and the amount of your equity.
If you have poor credit.
Although approval is not guaranteed, there is still a fair chance for you to be approved since your home is securing your loan. Know that even upon approval, your credit score directly affects the interest rate you’ll pay.
Contact us today to get set up an appointment!