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4 Ways To Shop For Home Equity Loans

[Nov 13, 2009.]


1. Use the Internet - There are several websites dedicated to mortgage loan origination.  Some websites specialize in home equity loans. The Internet is a great place to start shopping for home equity loans.  You can educate yourself on the basic guidelines required for approval and the average interest rates being offered. Applying for a home loan online is probably the easiest method because you can make the application at any hour that is convenient for you. You also don't have to use your precious gas driving around. If your preferred method of communication is email, web based mortgage origination should suit you. Of course, the home loan lenders you'll find are almost always available by phone also. When on a web page, be careful not to enter more than your contact information until you are sure that the home loan lender you have chosen has a secure website.

2. Visit your banking institution- Some banks still have mortgage loan officers sitting in the branch waiting to take loan applications.  This is less common than it used to be because web based mortgage lending has taken such a large market share from the branches. Many of the larger banks may refer you to their websites for information and to apply. So call ahead to see if a mortgage loan officer is on staff and what times he or she would be available.

3. Work with a mortgage banker - If the bank that holds your checking and savings accounts doesn't offer home equity loans or if you would like to shop another lender, you may want to go to a different bank. Sometimes there are bankers that offer home equity loans but don't take deposits. Just because you don't have deposits at the institution, doesn't mean they won't lend money to you as qualified buyer. It just depends on their business model and who they are set up to service.

4. Check out a mortgage broker - It is a subtle difference, but mortgage brokers and mortgage bankers offer slightly different services and product lines. A mortgage banker is associated with a bank and most often funds with the bank's own money collected in the form of client deposits. A mortgage broker typically works with wholesale lenders that fund mortgage loans using credit lines issued by investors.  As a home equity loan client, these are behind the scenes operations that you won't see during your loan process.  But the difference in how the loan is made can make a difference to turn around times, general customer service, and mortgage product availability.


About Author:

Renee Morgan has been a loan officer for over eighteen years. She is also a freelance writer and guest expert for radio and TV.

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