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Before you apply: Know what factors may affect your loan decision

Before you start your home equity application, we want you to be informed about the factors we consider when making lending decisions:

Credit history

A good credit rating and a history of making on-time payments may improve your ability to obtain financing. Before you apply, order your free annual credit report and correct any errors.


Sufficient home equity

Your home equity is what’s available after subtracting what you owe on your mortgage, and any outstanding home loans or liens, from your current home’s value. You might be eligible to borrow up to 80% of this value. Start estimating your home equity financing options using our rate and payment calculator.


Debt level

To find out if you can comfortably manage new debt, we review your monthly pre-tax income and debt payments. You can conduct your own review by calculating your debt-to-income ratio: Divide your total monthly debt by your monthly pre-tax income; then multiply by 100. If the result is above 36%, visit the Smarter CreditSM Center to learn how you could reduce your debt payments.
We’re here to help. If you have questions, please call us at 1-888-667-1772 .
What is debt-to-income ratio? Debt-to-income ratio is the percentage of your monthly income that is spent on monthly debt payments.
 
 
Equal Housing Lender