Applying for a HELOC: What you should know
Get the cash you need, when you need it, at a great rate.
A home equity line of credit, or HELOC, can be a helpful way for you to access funds flexibly for things such as home renovations, major purchases, or debt consolidation.
While opening a HELOC might take longer than opening a credit card, it’s still a relatively quick and easy process.
Before applying for a HELOC, there are a few helpful things to know:
How do I know if I’m eligible?
As long as you own your home and have enough equity, you may qualify for a HELOC – even if you’ve only lived there a short time.
The minimum loan amount you can apply for is $10,000, and Everence® Federal Credit Union can lend up to 90% of your home's value – after accounting for any existing mortgages or liens.
How do I apply?
You can apply online or visit your local EFCU branch and speak with a loan officer. The process of obtaining an HELOC – from application to closing – is typically about three to four weeks.
When you apply, you’ll need several documents on hand, whether you apply online or in person. You’ll need:
- Recent paystubs
- Your W2
- Verification of employment
- Proof of homeowners insurance
- Your property tax bill(s).
Within three business days of applying, you’ll receive early disclosures. These documents will explain loan terms, estimated costs and borrower rights. Once you sign disclosures, EFCU will order an appraisal of your home and begin the required searches.
Your EFCU loan officer will keep you updated throughout the process and will let you know if they need anything additional.
What happens once I’m approved?
Once you’re approved, your EFCU loan officer will reach out to schedule closing. After signing, there is a 3-day window to cancel the loan if needed (also known as a “rescission period”).
If you proceed, funds are then available and disbursed, and a lien is filed on the home. Congrats – you now have a HELOC!