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If you're thinking about a home equity loan, chances
are you have a lot of questions. Champion Mortgage® wants to
help you make the right decision.
What is a home equity loan?
What is home equity?
What can a home equity loan be used for?
How do I know what loan is right for me?
How quickly can I get a loan approved?
Is there anything I should do before starting
the home equity loan process?
How much will I have to pay at closing?
Can I save on closing costs by getting a
home equity loan through my mortgage lender?
What documents will I need for the loan?
What is a home equity loan?
A home equity loan or "second mortgage"
lets you borrow against the equity you've built up in your home at a very
competitive interest rate.
What is home equity?
Home equity is the difference between your home's
current market value and the total amount you owe on your home loan. If
your home is worth $100,000, and you owe $60,000, for example, you have
$40,000 in home equity.
What can a home equity loan be used for?
Basically, anything you want. You can use the money
from your home equity loan to pay off or consolidate high-interest debt or credit cards, pay for
college tuition, car repairs, remodel your kitchen, add a new bedroom
or bathroom, medical bills, or any of life’s big expenses.
How do I know what loan
is right for me?
Choosing the right loan is about a lot more than just
an interest rate -- there are a lot of other factors to consider. Getting a home equity loan can
be a complicated decision. With Champion Mortgage, you’ll enjoy one-on-one
service backed by the expertise gained from more than 25 years in the
business. We’ll listen to your needs and carefully assess your financial
situation. Only then will we recommend a home loan with the right rate, payment
terms, and special features that are customized for you.
How quickly can I get a loan approved?
At Champion Mortgage, you can begin the loan application process
in as little as 10 minutes on the phone, or when you’re online, you can request a free, no obligation consultation with one of our Loan Specialists who will listen to your needs, then walk you through your loan options.
Is there anything I should do before starting the
home equity loan process?
Before you get a home equity loan, it's important
that you’re as comfortable as possible with the process. Our home
equity loan sections can give you the information you need so you
can be prepared to make the right decision. You may also find
that gathering some of the information below is helpful before applying
for a home equity loan.
- Get an idea of your home's current value by seeing
what homes are selling for in your area. This will help you estimate
the amount of equity currently in your home before a formal appraisal
is performed. These listings are often available online and in your
local newspaper.
- Review your credit report online and make sure
all the entries are accurate. If anything is incorrect, you can request
a correction immediately.
- Collect any information you might need, such as
recent mortgage statements and tax documents.
How much will I have to pay at closing?
Home equity loans generally have the same types of
closing costs as your original home loan. Every lender is required to provide
you with a good faith estimate of those costs within three business days
of your home equity loan application. Then the lender will advise you of the final amount
due within about 24 hours of your closing. You may also need to bring a certified or cashier’s check to the closing for any closing costs that are your responsibility. Often, your closing costs are included in the total loan amount so you won’t be expected to pay these fees out of pocket.
Can I save on closing costs by getting a home equity
loan through my mortgage lender?
Any time you get a new loan, there are a number of
costs associated with the process. Even if you go with your current lender,
you'll need to pay for expenses incurred by the appraiser, title company
and closing agent. You're more likely to come out ahead simply by making
sure you get the right loan terms.
Your Champion Mortgage Loan Specialist will help you decide the best route for you.
What documents will I need for the loan?
This can change, depending on the type of loan and
the lender, but before you close, many mortgage lenders will want to see copies
of the following:
- Positive identification.
- The settlement statement from your existing mortgage.
- Proof of property and hazard insurance.
- Income documentation, such as W2's for the past two years
and pay stubs for the past 30 days.
- Other documents that pertain to your specific situation, such as child support or alimony payments, a divorce decree, or pension papers (these documents need not be revealed unless you want to have this income considered in the loan decision).
Your Champion Mortgage loan representative will make sure you
understand all the needed paperwork.
At Champion, we understand that considering a home equity loan raises
a lot of questions. Our loan specialists are trained to listen to your
needs and carefully assess your financial situation. Only then will we
recommend a customized solution that makes sense for you. Ready to get
started? Call 1-800-CHAMPION or
click here for a free, no obligation consultation with one of our Loan Specialists.
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