HELOC Resources

A family reading together and thinking how they can use the equity in their home

HELOC Process

Home equity is the difference between the balance on your home loan and the appraised value of your home. It’s a valuable asset, but you can’t access it without a financial transaction like a cash-out refinance or a Home Equity Line of Credit (HELOC).
 
A HELOC allows you to tap the equity in your home on an as-needed basis. Your credit limit is based on the amount of equity you have in your home, and you only borrow from the line of credit as you need funds.

1

Step One

Meet with your CrossCountry Mortgage loan officer to decide if accessing the equity in your home is the right choice for you, and if a HELOC is the best way to do so.
 

2

Step Two

Within the first 14 days after you submit your application, we’ll work together to gather all documentation, ensure everything is complete and accurate, and send the application to loan processing for review.
 

3

Step Three

The loan processor will start reviewing your documentation within 24 hours and complete the review within 2 days of receipt. The processor will then submit your loan to underwriting. We will also order your appraisal, if applicable.
 

4

Step Four

The underwriter will complete an initial review within 24 hours. If any conditions (missing or additional items or information) are required, your loan will be sent back to the processor to clear them and prepare for closing. Once complete, the loan will return to underwriting for final review and approval.
 

5

Step Five

The underwriter will issue a clear to close (CTC) and advise the processor, who will inform all parties of the CTC, verify the closing date and time, and place the loan in the closing queue. The closer will have 24 hours to provide closing documentation to the settlement agent.
 

6

Step Six

You’ll attend the closing and sign the final documents. Congratulations!

Mortgage Checklist

 The following information is usually required during the HELOC process. Additional documentation may be needed.

  • Your government-issued photo ID
  • Federal tax returns for the most recent 2 years
  • W-2s and/or K-1s for the most recent 2 years
  • Current P&L and balance sheet (if applicable)
  • Pay stubs for the past 30 days
  • Bank statements for the most recent 2 months
  • Most recent copies of asset/retirement account statements
  • The declarations page of your homeowners insurance

Find a Loan

What are the advantages of a HELOC?

A HELOC is a line of credit you access as needed. Your credit limit is based on the amount of equity you have in your home. Advantages include:

  • Rates – Usually lower than credit card rates.
  • Flexibility – Borrow only what you need and repay as much as you wish (must meet minimum payment requirements).
  • Convenient funds – Access your money via check, personal withdrawal, or debit card.
  • Fast loan process – You may not need an appraisal, and your credit history is not usually a factor because the line of credit is secured by your home.
  • Cost-effective – You pay interest only on the amount you borrow, not on the entire line of credit.

Is there another way to access my home equity?

A cash-out refinance is a different route to tapping your home equity. Here are a few factors to consider:

  • How are your credit scores? They may not matter for a HELOC, while lower scores could impact your refi.
  • Do you just need access to an emergency fund? A HELOC could be the better choice since you only borrow what you need.
  • Do you want stable monthly payments? A fixed-rate refi offers more certainty because the amount you borrow doesn’t change and the rate is fixed for the life of the loan.

How could a HELOC help me?

A HELOC can be a flexible, cost-effective source of funds, but remember you are borrowing money against the value of your home. If you can’t keep up with your payments, you could put your home at risk. Some important ways you can use a HELOC include:

  • Creating a line of credit for emergencies.
  • Paying for educational expenses.
  • Renovating your home.
  • Paying off higher-interest consumer debt.