Before you apply for a Home Equity Line of Credit, there are a few things you need to know. At INSOUTH Bank, we want you to be prepared for each financial decision that you make. As you consider your loan options, know that we are here to assist you in making these decisions.
You’ll want to start by pulling your credit report. Each year consumers are entitled to one free credit report from each of the credit bureaus. Look at your reports and dispute anything that isn’t yours. Close and remove any credit cards you aren’t currently using. Removing items that aren’t yours and cleaning up your report will help increase your score. The lender will want you to have a fairly high credit score so help yourself out by doing these things to increase your score.
Your lender will want to see your financial records so have your checking and savings account documents available. They’ll want to see your income and any recurring payments like child support or alimony. Make sure to include any debt also. You may consider paying your debt down a bit before applying as the lender will be looking for a low income to debt ratio. Because they’ll be looking for income, make sure you include your employment history and employer information as well.
Lastly, make available any information regarding the property. You’ll want to include an appraisal, proof of insurance and title insurance documentation. Since your loan is determined by the amount of equity in your home, you’ll need to supply them with this information also. The more equity you have in your home, the higher your loan will be.
If you are considering applying for a HELOC, please contact one of our friendly and helpful INSOUTH Bankers.
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