What is the process for a heloc loan? Timeframe and docs..

5 Replies

I'm considering taking out a Heloc on my home for my first deal. The ultimate goal is to BRRRR. Can you give me an overview of the timeline, documents needed, credit analysis etc. that goes into the approval process?

Process is the virtually the same as securing a first mortgage. Bank will verify income, employment, credit history, and order an appraisal. Only major difference is you already know the title is clean, so that helps things move a little faster. Also most banks will waive closing costs. In terms of timeline, it depends on how fast you move, and how good your loan officer is. If you work with someone competent and provide all the necessary documentation up front, it shouldn't take more than a few weeks. If there are delays in providing paperwork or more verification is needed, it could take 30 days or more.

A heloc is going to be a little quicker than a mortgage. I would say 3 weeks as an average. As far as docs: paystubs, w2, maybe tax returns, bank statements, disclosures and signing docs at title company.

@Craig Jeppesen

The only thing I would add to what others have said... is try to work with a lender that has other financial products you can use in the future as well. These days you have to share so much info for an approval, that if months from now you see an additional property you can ask them to use the large file of data you gave them last time and just freshen up their application files versus start over. Good luck!