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It can take anywhere from 14 to 28 days for a lender to process and approve your application for a home equity loan. But keep in mind that the exact amount of time it takes varies depending on the lender, your financial situation and how quickly you can get the paperwork together.
Home equity loans and HELOCs are both ways to obtain cash while borrowing against the value of your home. But while HELOCs open up a line of credit for ongoing use, home equity loans offer a lump sum of cash — and tend to be approved more quickly.
Several factors can affect the time it takes you to receive your funds, including:
A low credit score could slow down the underwriting process, which is when lenders determine whether or not you’re eligible for a loan. If your credit score is between 620 and 700 on the FICO scale, it could signal that a more in-depth review of your financial history is required. A credit score lower than 620 may outright exclude you from being approved.
Staying organized throughout the process will help speed things up. Documentation you might need to provide includes:
Compare these lenders and lender marketplaces by the type of home equity product you’re searching for, state availability and minimum credit score. Select See rates to provide the company with basic property and financial details for personalized rates.
Exactly how long it’ll take to get your money after approval depends on the lender. However, when your home is on the line as collateral, federal law allows you to cancel the loan within three days after signing the credit contract. So, typical turnaround time for the cash to hit your account is about four days.
Getting a home equity loan can take anywhere from two to four weeks, depending on a number of factors. And since your home is on the line, the process shouldn’t be rushed. Take some time to shop the market first to find the best fit for your situation.
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Choose from several options, but beware of this lender’s fees and poor reviews.
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Get a low rate guarantee, but you won’t know if you’re eligible until you apply.
Get a line of credit with low closing costs — but you can’t apply online.
Get fixed- and variable-rate options in a HELOC, if you qualify for membership.
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Offers reduced-rate, no-closing-cost HELOCs, but only in specific states.
