Share buttons

 

 

The Home Equity Process

Guide to the steps involved.

Origination - Visit a loan advisor to determine the best loan to fit your financial needs, and submit the application. You may also apply online.

Processing During processing, we will communicate what type of appraisal, title, and additional documentation we will need to evaluate your loan. The quicker we receive the requested documentation, the quicker your loan can move through this stage.

Underwriting - An underwriter will review your loan to evaluate its approval. Additional supporting documents may be needed.

Clear to Close - The Clear to Close indicates that all processing and underwriting conditions have been met, and your loan is approved! Bank regulations may require that you receive your closing documentation 3-7 days before your closing may be scheduled.

Closing & Funding - During closing and funding, you will sign all the necessary documents to finalize your loan, and the 3-day right of rescission period will begin. Once the rescission period expires, the funds are yours. 

 

SPECIAL REMINDER ABOUT PROPERTY TAX TIME

If you apply for a loan and intend to close within 30 days of property taxes being due, we will need proof that your property taxes are being escrowed on your first mortgage or proof that your taxes have been paid.

Application document checklist.

Annual Income

  • Most recent paystubs and most recent W-2
  • SSI, Disability, Investment Income, Pension Award Letters, 1099's or direct deposit statement if appropriate
             - Provide three consecutive statements with deposits for the stability of income
  • Federal Personal Tax Returns for the past two years if self-employed, have additional income, or rental income (with rental also need mortgage statements)
            - Self-employed borrowers must provide 2 years business federal tax returns including all schedules & K-1’s              -Self-employed borrowers must provide most recent Profit and Loss statement
  •  Verification of any other income – documentation (child support, alimony, etc. if applicable & using to support obligation)

Current Obligations

  • Child support and/or alimony obligations – if applicable

Employment and Residentce history for all borrowers for the last two years 

Existing mortgage information with name of company,  an outstanding balance, payment and escrow

  • Current mortgage statement required 

If no Escrow – Verification of all monthly property expenses required: 

  • Real estate taxes (from the tax bill, website, HUD)
  •  Homeowners insurance (declarations page with annual premium and expiration date)
  • Homeowners Association dues (if applicable – annual statement or letter)
  • Flood insurance (if applicable – from homeowners insurance information)

Certificate of Trust document(s) is required if the property is titled in a trust 

  • Do not send the trust documents

Debt Consolidation Information (when appropriate):

  • Copies of all recent statements past 30 days for accounts to be consolidated
  •  Statements must include account holder name, current amount, full account number, and address to mail payoff
Other documents may be requested upon further review of your file.  All documentation should be received within 10 calendar days of application.

 

The web site you have selected is an external site not operated by Horizon Bank. This link is provided for convenience and informational purposes only and Horizon does not endorse and is not responsible for the content links, privacy policy or security policy of this website or app you are about to visit.  Horizon Bank is not responsible for (and does not provide) any products, services or content for this third-party site or app, except for products and services that explicitly carry the Horizon Bank name. Click Proceed to continue or Cancel to go back.