topic Re: Citizens Bank HELOC Preapproval letter! in Mortgage Loans

Citizens Bank HELOC Preapproval letter!

Pit-Smoker — Tue, 04 Aug 2020 00:20:46 GMT

Hey all:

I'm out of the Garden (yeah, again. :-( ) but I received a HELOC preapp in the mail from Citizens Bank, who is one of my Banks, and I had a reasonable exchange with an LO. Ultimately, I've been conditionally approved for this HELOC, which will really help me finally oust this debt and pay it all down much faster.

Could someone please tell me how a HELOC is treated in the eyes of your portfolio? Is this like a credit card-- that must remain under preferably 89/66/49/29% UITL (or whatever the numbers are)... or is it treated more like a real Mortgage where it's kind of expected that a new loan would be sitting at about 99%UTIL for a while?

Thanks! I'm off to adjust my Sig-- if I remember how!

My best to all!

Re: Citizens Bank HELOC Preapproval letter!

AllZero — Tue, 04 Aug 2020 00:25:11 GMT

Congratulations on your conditional pre-approval.

Re: Citizens Bank HELOC Preapproval letter!

Pit-Smoker — Tue, 04 Aug 2020 00:25:46 GMT

Thanks!! :-)

Re: Citizens Bank HELOC Preapproval letter!

Harvey26 — Tue, 04 Aug 2020 02:38:07 GMT

@Pit-Smoker wrote:
Hey all:
I'm out of the Garden (yeah, again. :-( ) but I received a HELOC preapp in the mail from Citizens Bank, who is one of my Banks, and I had a reasonable exchange with an LO. Ultimately, I've been conditionally approved for this HELOC, which will really help me finally oust this debt and pay it all down much faster.

Could someone please tell me how a HELOC is treated in the eyes of your portfolio? Is this like a credit card-- that must remain under preferably 89/66/49/29% UITL (or whatever the numbers are)... or is it treated more like a real Mortgage where it's kind of expected that a new loan would be sitting at about 99%UTIL for a while?

Thanks! I'm off to adjust my Sig-- if I remember how!
My best to all!

I see you wanted to refi your house. Did you think about doing a refi cash out?

Re: Citizens Bank HELOC Preapproval letter!

Pit-Smoker — Tue, 04 Aug 2020 02:45:13 GMT

DW and I Tried that option in November and were summarily denied. The HELOC pre-qual was a pretty welcome sign, to be honest.

Theoretically, we'll work to consolidate any indebtedness here and the First mortgage, later, in a non-FHA conventional loan, which will also allow us to get out from under the FHA PMI.

One step at a time...

Impatiently but steadfast.

Re: Citizens Bank HELOC Preapproval letter!

Pit-Smoker — Tue, 25 Aug 2020 17:31:26 GMT

Hi all-- Still wondering if anyone knows how UTIL in a HELOC is assessed by the Credit Bureaus: E.g., when it's maxed out, does it count as BAD, like if a Credit Card were maxed out, or is it seen more like a personal loan, which is expected to start at MAX and is then paid down over time? Thank you!

Re: Citizens Bank HELOC Preapproval letter!

VALoanMaster — Tue, 25 Aug 2020 17:41:29 GMT

@Pit-Smoker wrote:
Hi all-- Still wondering if anyone knows how UTIL in a HELOC is assessed by the Credit Bureaus: E.g., when it's maxed out, does it count as BAD, like if a Credit Card were maxed out, or is it seen more like a personal loan, which is expected to start at MAX and is then paid down over time? Thank you!

I am pretty sure HELOCs are treated the same as revolving accounts.

Re: Citizens Bank HELOC Preapproval letter!

Pit-Smoker — Tue, 25 Aug 2020 17:46:04 GMT

Thank you! I will keep this firmly in mind.