- Application process: The first step in getting a home equity loan is to submit an application to borrow the money. This process can take anywhere from a few minutes to a few hours depending on the lender and the type of application you’re filling out.
- Income and asset verification: Once you’ve submitted your application, the lender will want to confirm your income and assets. This may involve providing documentation such as bank statements, tax returns, and pay stubs. Depending on how quickly you can gather these materials, this step could take a few days to a week.
- Home appraisal: Since a home equity loan is secured by your home, most lenders will require an appraisal to determine its value. This step can take a few days to a week depending on the availability of appraisers in your area.
- Underwriting: Once the lender has reviewed your application, income, assets, and home value, they will underwrite the loan to ensure that it’s a good risk for them. This step can take a few days to a week.
- Funding: Assuming everything checks out with the underwriter, the lender will then be able to fund your loan. This step can take a few days to a week depending on the lender’s policies.
If you’re considering a home equity loan, you probably want to know how soon you can get your hands on the money. While the timelines can vary depending on the lender, here’s what you can generally expect: