With home values increasing at a rapid pace, home equity borrowing is becoming very popular among homeowners in Virginia. Although applying for a home equity loan can seem like a complicated process, all you really need is a little bit of information. Here are some of the documents and information you'll need when applying for a Virginia home equity loan:
If you want to take out a Virginia home equity loan, your lender will want to get all of your personal information, including your full name, address, telephone number, marital status, and social security number. If there will be a co-applicants applying with you, they will need to supply their personal information as well.
Current Mortgage Information
To decide whether or not you qualify for a Virginia home equity loan, lenders will need your current mortgage information. This is what they will use to determine how much you still owe on the balance and how much your current mortgage payments are. Information that you will be expected to supply includes the name of your lender, the outstanding mortgage balance on your first mortgage, and details about any other home loans that you currently carry.
In addition to supplying the information shown above, you will also be subject to income verification and credit checks. Your credit history will determine the rate you pay. Those who have a credit score above 620 can expect to pay 7.56 percent, the average for home equity loans in Virginia.
To determine whether or not you can afford a Virginia home equity loan, lenders will also want to find out information about your other debts. If you are overdrawn with current mortgage payments and high interest debts, the lender will consider you more of a risk and may increase the rate that you will be expected to pay.