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.