Home equity loans act as a second mortgage, providing the funds you need for big purchases,
home renovations, college tuition, and more. These loans are calculated based on the market value of your home minus the principal owed on your mortgage.
Where to Get a Home Equity Loan
The first step to securing a home equity loan is picking a lender. Before picking a lender, consider if a home equity loan is right for you. You’ll need a minimum amount of home equity, a good credit score, and reliable income as regulated by your lender. These factors impact your loan amount, interest rate, and APR, determining where you should get your home equity loan. Horizon Bank offers low-interest rates and additional benefits for ideal applicants.
Steps to Get a Home Equity Loan
- Apply for the loan. After choosing a lender, you'll have to apply for a loan. Most home equity loan applications are online, making the application process simple and quick.
- Meet with a loan advisor. Once you’ve applied, you’ll meet with a loan advisor. Make sure you bring tax documents, current mortgage, proof of income, and additional relevant materials. The loan advisor will assess your eligibility for a loan and inform you of interest rates and APR. If you’re eligible, they will appraise and underwrite your loan.
- Sign your loan. After meeting with an advisor and agreeing to the loan terms, you will close on your loan and receive your loan funds!