If you are in the process of purchasing a home in El Dorado County, you may be wondering, how can I get a home equity loan?
The process may be easier than you think.
What Is a Home Equity Loan?
In a nutshell, this type of loan allows you to borrow money against the equity in your home. Once you have purchased your home, you are now legally permitted to use up to 85 percent of the home’s appraised value as a loan. The money you use to buy your home is your equity, but if you have enough money invested in your home, you can still borrow money against that equity.
How to Get a Home Equity Loan in El Dorado County
Before purchasing a home, if you have any outstanding home equity debt such as a credit card, a car loan, student loans, or any other kind of loan that has not been paid off, you will need to pay it off before you can apply for this type of loan. To become an approved home buyer, all you need to do is go through a home loan approval process and work with a mortgage professional. You will be required to pay a down payment and closing costs. The minimum down payment on a home equity loan is 3%. Then you can start applying for an equity loan. The process is pretty simple. You will fill out an application for a home equity loan, and once approved, you will start applying for an appraisal and learn the amount of home equity you will qualify for.
Consider Getting a Realtor
Here are some helpful steps to help you start the process. When buying a home, it is wise to find a realtor to guide you. If you don’t have one, contact a realtor you know and start networking. Get pre-qualified for a home equity loan The easiest way to get pre-qualified for a home equity loan is to speak with your lender. A lender can help you estimate how much money you will need for the down payment, closing costs, and mortgage payment. If you don’t have a formal plan, you won’t qualify for an equity loan.
What Are the Advantages?
Equity loans can be the most affordable form of funding available. There is no need for you to obtain a credit score or loan from a bank. They can also be accessed immediately, even if you have poor credit. Home equity loans can be used to make large purchases such as a home or fund a home project such as a remodel or addition.
Contact Zech Buys Houses
Before you can focus on acquiring a home equity loan for your new house, you need to sell your current home. Make things simple and contact Zech Buys Houses today to see what we can do for you. We buy houses in Colorado Springs, Colorado, in all shapes, sizes, and conditions fast and in cash so you don’t have to go through the struggle of trying to sell an unwanted property in an unforgiving housing market. Call us today to receive your fair, written, no-obligation offer, and you could have money in hand for your rental property in as little as seven days.