Pittsfield, MA -- (SBWIRE) -- 03/21/2013 -- The good folks at Real-estate-yogi.com have done some research on this topic, and are happy to share their results, including:
- Look into Several Lenders
- Have Excellent Credit
- Produce the Mortgage Statement
- List Debt and Income
Check Different Financers
It’s always good to check out several financers for the best rates, particularly when looking into how to qualify for a home equity line of credit (HELOC). Interview representatives from several banks, credit unions, and other lenders and ask about HELOC rates, fees, and lengths of the draw and repayment time frames. Choose the right lender for one’s situation based upon the lowest rates and best terms.
Sterling Credit Helps
Part of how to qualify for a home equity line of credit is knowing one’s credit score. People whose score is over 700 can access excellent rates and terms. Those whose score is lower may still qualify, but the rates won’t be quite as good. Be sure, too, that all credit accounts are up-to-date, as this encourages lenders to approve one’s application. While gathering documentation of one’s financial standing to obtain a HELOC, one might want to include recent pay stubs so the lender knows that supporting one’s application is a wise move.
Get Approved for Home Equity Line of Credit with Lower Rates Apply Today!!
Current Mortgage Statement
Be sure to have the most recent mortgage statement available when applying for a HELOC. Having this on hand is an important component of how to qualify for a home equity loan. It would be extremely poor business if a financer simply approved one’s application without knowing the equity was available; having this document with one while applying is vital to a successful result.
Know One’s Debt and Income
When learning how to qualify for a home equity line of credit, one must be able to provide proof of the past month’s income as well as the expenditures. The financer will figure out the mortgage payment, possible HELOC payment, interest, property taxes, and homeowner’s and mortgage insurances total, which he will then compare to one’s total monthly income amount to get the debt-to-income ratio, which should not be more than 28% in order to qualify.
About Real-estate-yogi
www.Real-estate-yogi.com is a highly respected consumer resource website located in Pittsfield, Massachusetts that provides its service for free. It connects people who have real estate-related issues to the professionals in that field who can help resolve them. For a complimentary conference, dial 800-987-1397.