Whether you are needing to make some needed repairs to your home or carry out some upgrades, taking out a second mortgage, also known as a home equity loan is a flexible and great option. A common question that homeowners often have when considering this type of loan is how long it takes to get that finance.
In this article, we’ll take a look at how long this process takes and some ways to speed it up.
Home Equity Loan Processing Time
There is no one-size-fits-all answer to how long this process takes as there are many things that will affect the waiting period. But generally, the process can take anywhere between two weeks to two months. On average, most home equity loans are completed within a month, depending on outside factors.
Factors That Influence Home Equity Loan Timelines
There are some outside influences that can slow down or speed up the process from application to closing.
- Meeting the minimum requirements: If right from the get-go you meet the required qualifications to apply for this type of loan, this will speed up the application process. These requirements include things like having a certain equity in your home, a low debt-to-income ratio (DTI), and a good credit score of at least 620.
- Gathering all necessary documents: The better prepared you are, the fewer delays you are likely to encounter. At the beginning of the application process, you should make sure you have collected all the relevant paperwork. This might include things like credit reports, bank statements for proof of income, and current pay stubs.
- Appraisals: Part of the application process is having your property valued by a professional third party. If this evaluator is particularly busy, delays can occur. Some evaluators use the Automated Value Model, which gives an instant value using computer-generated metrics. This can speed up the process.
- Verifications: Verification of your paperwork is what takes the longest time in the process. This process is done by underwriters who will review your financial and property information. If you do not meet minimum qualified requirements, this can cause delays as you may be required to supply additional documents.
Apply For a Home Equity Loan in Ohio With Liberty Capital
Having a professional mortgage broker can help ensure the whole process, from application to closing, goes as smoothly and quickly as possible. Contact an expert mortgage broker at Liberty Capital Services to get the process started. Call us today at (614) 505-0620 to book your consultation.
