If you have built up quite a bit of equity in your home and are in need of a lump sum of money, then you might want to consider an equity takeout in Victoria, BC. With this type of loan, you will be able to carry out much-needed repairs, upgrade your current home, or even make a down payment on a new piece of property.
Understand Equity Takeout Loans
For the average homeowner, most of their net worth is tied up in the equity of their home. As they continue to make payments and property values climb, that person could have quite a bit of equity borrowing potential. With an equity takeout loan, you are essentially borrowing against the total percentage of your home that you currently own.
Benefits of Home Equity Takeout Loans
Great interest rates: Because an equity takeout loan is secured by property that you already own, you could be offered excellent interest rates.
Multiple dispersal options: When you are approved for a home equity takeout loan, you can choose between a lump payment or an open-ended line of credit.
Upgrade your home: With your approved loan, you will be able to carry out any home upgrades or repairs that you have been considering over the years.
The lending requirements for this type of loan might change slightly between companies, but most of those institutions follow the same basic guidelines. As a general rule, you must have at least 20 percent equity in your home and a solid credit score. You can also only withdraw a certain percentage of your home’s equity, and many lending institutions set that cap at 65 percent.
What to Expect
Applying for a home equity takeout loan is going to be almost identical to any other type of loan, but you will need to do some research on your property beforehand. During our initial consultation, we will take a closer look at the current equity in your home, your credit history, and what the loan is going to be used for. If you decide that this type of loan is right for you, then I will help you fill out and submit all of the proper paperwork.
A few different variables are going to impact how quickly your application is approved or rejected, but most homeowners get a reply within six weeks of submitting their applications. After your approval, the funds can be transferred almost immediately.
I believe that home equity takeout loans are a great option for many homeowners, and that type of financial assistance could make your life much easier. If you have been considering some type of equity loan or line of credit, then I invite you to call me today to learn more about all of the mortgage products that are available to you. I will go over the pros and cons of these various loans so that you can make an informed decision.