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Home Equity Loan

Adkins
Mega Contributor

Re: Home Equity Loan

The DHs' boss actually got the paperwork in and we've moved onto the processing phase. They're requesting a few more pieces of information though. One of which I've got to get from someone else, my favorite! (Not!) Tiny steps forward, it seems. 

Last HP 08-24-2021



Message 11 of 20
ecrad17
New Contributor

Re: Home Equity Loan

Did they do an appraisal or did they take the value from their assessment?

Message 12 of 20
Adkins
Mega Contributor

Re: Home Equity Loan


@ecrad17 wrote:

Did they do an appraisal or did they take the value from their assessment?


They used the initial taxed value but are going to get it appraised, @ecrad17. I'm waiting for a call to schedule the appraisal. 

Last HP 08-24-2021



Message 13 of 20
Adkins
Mega Contributor

Re: Home Equity Loan

And we are still waiting on the appraisal. Supposedly my appraisal been taken up and then cancelled twice by third party vendors. I'm very unhappy right, since I wanted to be finished with this by now. 🤦🤦

Last HP 08-24-2021



Message 14 of 20
raisemysc0re
Frequent Contributor

Re: Home Equity Loan

Since you say you will be waiting until well after the loan funds... Have you thought about getting a HELOC (Home Equity Line of Credit) instead?

I ask because you will be getting charged interest on the total loan from the day it funds. So, say that ends up being 6 months to a year... On an ammoritized mortgage that could be a lot of wasted money. With a HELOC you could get the line of credit and take the money out as needed and only get charged interest when you are actually utilizing the money. 

I just closed on a HELOC from PenFed at 3.75% with no closing costs. They too were definitely lower in value then my homes true value but I didn't want to pay extra for an appraisal to up it since I don't actually have any need for the money (Just in case fund)...  

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Message 15 of 20
Adkins
Mega Contributor

Re: Home Equity Loan


@raisemysc0re wrote:

Since you say you will be waiting until well after the loan funds... Have you thought about getting a HELOC (Home Equity Line of Credit) instead?

I ask because you will be getting charged interest on the total loan from the day it funds. So, say that ends up being 6 months to a year... On an ammoritized mortgage that could be a lot of wasted money. With a HELOC you could get the line of credit and take the money out as needed and only get charged interest when you are actually utilizing the money. 

I just closed on a HELOC from PenFed at 3.75% with no closing costs. They too were definitely lower in value then my homes true value but I didn't want to pay extra for an appraisal to up it since I don't actually have any need for the money (Just in case fund)...  


Applying for anything else at this point isn't an option. If you've read my posts, you'd read that I had a very hard time getting paystub information for my DH. Unless theyl next lender takes what we have, which isn't current now, there's no way I'm getting anymore information from my DHs' boss, who runs a small business and doesn't list things like taxes or paid hours, on my DHs' paystubs. And no matter who we use, we have to have an appraisal because of state law. 🤷

Last HP 08-24-2021



Message 16 of 20
Adkins
Mega Contributor

Re: Home Equity Loan

Finally, we've got an appointment for the appraisal on December 1st. The appraiser wanted to come today but that's not possible with my work schedule, and next week has Thanksgiving, so that's the first date that worked. If we didn't need the appraisal we'd be done already at this point. 

Last HP 08-24-2021



Message 17 of 20
ridgebackpilot
Established Contributor

Re: Home Equity Loan

Thanks for posting your story, @Adkins. Coincidentally, I'm going through exactly the same process with Discover Home Loans now.

 

I shopped around quite a bit before choosing to work with Discover. PenFed took weeks to return my call, and Navy Federal isn't currently offering any home equity loan products. Chase, Wells Fargo, and Bank of America either wouldn't work with us or offered unfavorable terms. Discover seemed like our best choice in a crowded market stressed by heavy demand for home equity lending.

 

Discover has been very thorough. My wife and I are both employed with pay stubs and documented income on tax returns, so we had an easier initial processing experience than you did. We've also owned our home for nearly 15 years and have lots of equity. At the moment, our scores are slightly lower than yours so we qualified for 5.75% on our 30-year loan. 

 

The Discover Home Loans website makes it easy to upload the documents they've asked for. The main holdup in processing our loan has been getting Wells Fargo to verify the terms of our first mortgage. But I think we'll get there soon. Discover had no problem with the lien on our property placed by our solar energy lender. They hired a local realtor to do a drive-by appraisal. He came and took photographs of the exterior of our home. I suspect the high value of our current real estate market here on the central California coast has made appraisals largely a formality.

 

So far our experience with Discover has been quite positive. Between the personal banker assigned to us and the senior loan processor handling our case, we've felt well looked after. Our loan is about ready to move from processing to underwriting. Fingers crossed for both of us!

 

 

 

Message 18 of 20
Adkins
Mega Contributor

Re: Home Equity Loan

Your welcome, @ridgebackpilot! And thanks (fingers also crossed for you!)

Last HP 08-24-2021



Message 19 of 20
Adkins
Mega Contributor

Re: Home Equity Loan

The appraiser seemed happy with the condition of the home and let it slip it'd be valued $75K higher than the property tax has it listed at. According to our personal loan person, assuming everything went well with the appraisal, it'll be a few days for the paperwork to completed and then sending our file to the underwriters for the final review. Turn around time for them is about 4-5 business days to complete the review and put our file in closing status. At that point closing would reach out to us a couple of days after that. So, maybe the end of next week, or two weeks from now? 

Last HP 08-24-2021



Message 20 of 20
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