If you are looking for a way to obtain a loan with your home equity, be assured that it is not only possible but easy. Today, more people are finding financial freedom through credit union home equity loans such as home equity line of credit (HELOC). When you take a loan on your home equity, you not only get access to emergency funds, but you can go on to increase your financial strength by adding value to your life or property using the loan. But how do you get started?

What You Need to Obtain a Home Equity Loan

The requirements are quite easy, especially when you already have a first mortgage running. You’ll need these:

● A positive credit rating in the 600s: You need to show a healthy credit rating to convince your credit union that you can meet up with the HELOC. Although your local credit union might approve a HELOC if your credit rating is slightly lower than 600.

● Positive home equity: HELOCs are only given on home equity. If you don’t have positive home equity, you cannot obtain a HELOC. Most lenders also require that you have a minimum of 20% of your home equity before applying for a HELOC.

● Documents such as identity, proof of homeownership, first mortgage proof, tax returns, proof of income, etc.

● A completed application.

Once you have those ready, contact your local credit union to begin your application.

Applying for a HELOC

You can apply online or physically at your local credit union. Most credit union home equity loans can be obtained within a short time after application. Although the application form might vary according to the different credit unions, you can expect to fill in personal information, financial information, and give permission for certain official actions. You can contact a representative to assist you at any stage that you encounter difficulties.

Benefits of HELOCs

Emergency funding: You can quickly raise funds for emergencies with credit union home equity loans. Getting other loans may take time, a crucial time that you may not afford.

No hidden fees: HELOCs don’t come with hidden fees. Once you apply, there are no processing fees to pay, unlike when you take the first mortgage.

Flexible payment: You can choose to pay the HELOC over a decade or more, effectively thinning the total repayment that you make. In that way, you won’t spend the bulk of your monthly income repaying loans.