Credit scores are very important when it comes to getting approved for a home equity line
Chicago, IL (PRWEB) May 22, 2015
With both home and rental prices rising, lenders like Peoples Home Equity understand that current homeowners wish they could have a piece of the action. A home equity line of credit is a great way to enable oneself to purchase another home.
The following are 3 tips Peoples Home Equity compiled to help ensure homeowners get approved for their home equity line of credit.
Make Sure The Debt To Income Ratio Is In Good Standing
Lenders typically approve or reject home equity lines of credit applicants based on the amount of income the individual earns versus the debt they carry. If an applicant earns $100,000 a year yet have $250,000 in debt then the amount of new credit issued by the bank may not be much. A person that gets approved for a home equity line of credit is someone that has a low debt-to-income ratio.
Maintain A High Credit Score
Credit scores are very important when it comes to getting approved for a home equity line. Maintaining a high credit score requires financial discipline. Individuals should make sure they are paying all of their bills on time and making at least the minimum payment. Lenders will not give any money to homeowners that either have a low credit score or show they may falter on future repayments.
Good Employment History
Not only do lenders want to see a high credit score but they also want to know where the income is coming from and how stable are the earnings. If an applicant has changed jobs several times in the last couple years, the lenders confidence is low regarding the applicants ability to earn consistent income for loan repayments.
Home equity lines are excellent ways to finance the purchase of low priced investment property. If in need of a home equity line of credit or mortgage, contact a Peoples Home Equity loan officer today at: 262-563-4026