Do a heloc before job change even if no property selected?

Question

Is is smart to do a heloc before changing jobs, to secure getting the loan even though I don't have the property selected that I want to use the money for yet?

Nathan Gesner · Answer

A line of credit lasts for years, so there's no need to identify a property first. You get the LOC and it sits there, waiting to be used. Just like a credit card, you don't pay interest until you borrow money. If you borrow $100,000 and then pay it back, you'll have that amount available to borrow again.

Lisa Koontz · Answer

Short answer: Yes!

Slightly longer answer: Depends on the job change. Will you be getting paid significantly more? Can you currently provide at least 2 years of steady income history? I applied for a HELOC after a job change, but it was a pay increase and I could still show a steady employment/income history (which is really what they want to see). Be prepared to show an offer letter and the first few paystubs if that's the way you go. If you believe you will qualify with either employment, go ahead and do it when it's simpler. The amount you can get is based on the value of the property anyway, not your income.