How to Prepare for Your Home Equity Application

If you are looking for a practical, tax-friendly way to pay down your credit debt using your home equity, you can expedite the process by gathering everything you need for your home equity application before you begin. Most applications can be completed online, whether with your local bank or a commercial home equity lender, but the time-consuming application process can be reduced to a few simple steps if you have all of your information at your fingertips.

A home equity loan requires verification of your income and debt. The information you gather to complete the application should be kept handy so that your lender can obtain the necessary copies for underwriting. You will need to gather information about all sources of income that you want to have counted, such as social security disability, child support and alimony. You are not required to report those sources, but they can help your eligibility by increasing your monthly income. You will also need to have the account numbers, balances, and monthly payment amounts of your credit cards, auto loans and other debts. You should also have your most current bank statement handy as the application will ask for information about your checking and savings balance.

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