Are you interested in applying for a home equity loan in California? The following information is designed to give you the answers to questions you might have.
What can I get out of a California home equity loan?
A home equity loan is essentially an all-purpose loan. You can use the money to send your child to college, pay off high-interest, credit card bills, undertake home improvements, etc. However, most people take out a home equity loan to simplify their credit portfolio. Instead of paying multiple statements from different creditors many people consolidate all of their bills with an home equity loan and deal with just one monthly payment.
What are the requirements in applying for a home equity loan?
Most home equity lenders require you to submit two important documents, (a) proof of home ownership of a single-family home, a duplex, a condominium unit, a modular home or a townhouse and (b) proof of the amount of equity you currently have in this residency. Lenders also typically do background checks ? they confirm your employment status and investigate your current income.
How much can I get from California home equity loan?
The money you receive depends on the amount of your equity at the time of application. Some lenders allow you to borrow up to 100 percent of the appraised value of your home less your existing mortgages. Others only allow you to borrow up to 80 percent. Interest rates are generally higher for borrowers with a less-than-sterling credit history.
Will it take long?
It generally does not take loan from application to loan, and some lenders grant loans in as little as five days — as long as you are able to submit all the documentary requirements. Applying online is usually faster ? you just have to fill out an initial application form, and you will immediately receive a loan proposal. If you agree to the terms and conditions, you can apply formally by sending the requirements.