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How do I Obtain a Home Equity Loan Online?

by Amber Keefer

Online loan applications make it easy to apply for a home loan and the application process takes only minutes. Completing loan applications online is convenient because you can save the information and finish the application at a later time if you get busy. Online banking sites also provide contact information if you have questions or need help during the loan application process. If you apply for a loan on the website of a regional or large nationally known bank, you can close the loan in person at a branch office near you.

Get a copy of your free annual credit report. Examine your report carefully to identify any errors. Dispute any incorrect information. Experian, Equifax and TransUnion -- the three major consumer reporting agencies -- allow you to dispute mistakes on your credit report online.

Choose a lender. Many brick-and-mortar financial institutions offer the availability of submitting home loan applications online although you also have the option of choosing from Internet-only banks that offer competitive loan rates. Just make sure you know with whom you are dealing and that there are no hidden costs.

Go to the online application on the lender’s website. Fill in your personal information. The application will ask for your name, current physical address and legal mailing address if different, telephone number and email address. You will need to provide your social security number, date of birth, marital status and for how long you have resided at your current address. Lenders use this information to identify you. If you have a joint or co-applicant, give that person’s social security number and complete the co-applicant’s section of the application.

Enter your monthly gross income in the income information section. The lender will consider income sources such as employment, commissions and bonuses, investments, royalties and rents, social security benefits and pensions. Many lenders do not require you to include income from alimony or child support unless you want it included as income to show you can repay the loan.

Provide any additional sources of income that may help qualify you for a loan. List your monthly debt payments and show assets that add to your net worth. When you apply for a home loan online, a mortgage officer will contact you and tell you what documentation you need to provide as proof of employment and income. You will receive a fax number where you should submit documents, which may include W-2 forms, recent tax returns, bank statements or other information the lender requests. Some financial institutions allow you to submit the required documents electronically.

Give an estimate of your home's value. Many real estate websites offer free calculators that allow you to estimate your home’s value. All you need to do is enter the property's address. The websites of some financial institutions also offer calculators you can use to get an estimated property value.

Indicate the amount of the loan for which you are applying. Figure out how much equity you have in your home by subtracting the balance you owe on your mortgage, including any other home loans or liens on the property, from the home’s current market value.

Review the loan application carefully before signing and submitting it electronically. Make certain that you’ve completed all the required sections. You must provide any information on the application that is highlighted with an asterisk.

About the Author

While business skills are essential in any career field today, my MBA degree in combination with more than 25 years of employment experience in the fields of human services, higher education, health care, continuing care services for senior adults, and freelance writing have aided me in developing a number of strategic strengths including: · Commitment to providing the highest quality of written work · Effective communication and writing skills · Reliability and high standards for writing · Initiative and ability to thoroughly research a topic {{}}

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