We've wanted to get a few things done around the house and consolidate some CC debt. After looking around, we decided to apply at Discover for a home equity loan due to a lower rate history and no closing costs. The last tax bill gave a home value of $180K (although, according to a local realtor, we could easily get twice that!), and we applied for $110K, for 30 years. We both got HPs on all three CRAs and pre-approval for the amount we asked for. My husband and I are co-borrowers, but he's listed first as the main one because he's got a better credit score than me. They gave him an EQ mortgage score of 730 and a EX Fico 8 of 684 for me. We had a little difficulty with some of the paperwork since he works for a small business and doesn't get a regular pay stub. We finally got everything they asked for sent to them and got a confirmation email on 9/1 that everything was in and they'll let us know after the documents are reviewed. Unless the reviewers find some glaring discrepancies between what we listed and the paperwork we sent in, our "personal banker" was confident we'd be formally approved.
A few notes:
- The representative made note that we hadn't sought out credit in the last year and then specially asked if we planned to apply for new credit in the next 60 days.
- We have no intention to take 30 years to pay the loan off. We plan to pay $200-$500 extra each month towards principal, to cut the time and interest down. At the most it will take 15 years, to 9/10 years at the latest, based on my calculations.
Great. Know y'all are anxious to get the improvements started. Had our kitchen redone about 3 1/2 years ago and it still feels like a breath of fresh air to go in there.
@tcbofade wrote:Yay you!
I hope that the rest of it goes well for you. Please keep us updated!
Thanks!
@kilroy8 wrote:That's great news Adkins, hope you get a good rate.
Thanks! We got 4.49%, a little bit above the best they offer at 3.99%.
@IncrsCreditScore wrote:Great. Know y'all are anxious to get the improvements started. Had our kitchen redone about 3 1/2 years ago and it still feels like a breath of fresh air to go in there.
Unfortunately, even once it funds we are going to hold off for a bit until lumber prices come down some more. 🙄
And things are held up because of the DH's job. Since his boss doesn't list year to date pay and deduction totals on the DHs' checks, we are having to wait for his boss to send in work verification paperwork. (We did get the numbers sent in but his boss hand wrote part of the information and Discover wouldn't take it. 🤦🤦).