We want everything now. In our online purchases, in the supermarket and, of course, also when we ask for financing. For requests for small amounts, speed is a fact: in just 10 minutes we can have the money in our account. However, as the amount of money increases, the reception time usually does, too.
In mortgage loans, in addition to offering very high amounts, we must bear in mind that there must be some formalities beyond the usual ones that require other credits. We see what they are and how to carry them out.
Appraisal and registration, the passport to home equity loans
The documents that a lender can ask us for when requesting financing are those that we all know: justification of income, a bank statement with the latest movements, DNI, income statement and employment contract.
However, in the case of home equity loans, some of these may be overlooked, as these types of loans can be granted even when the applicant has no income. This possibility occurs because the payment guarantee is a home.
We always recommend that, before requesting it, it is essential to have some income or know with total certainty that we will be able to respond to the loan installments. Otherwise, we run the risk of losing ownership of the house.
And although we save the delivery of some documents in this way, there are two that do not appear in other financing, but in mortgage loans. Are these:
- Appraisal report. This document will serve to know the value of the home that is intended to be put as a guarantee of payment. The bank or lender needs it to decide what amount to grant to the applicant. The person in charge of preparing this report will be an appraisal company and its average cost is over 300 dollars.
- Registry check. This note, which must be requested in the Property Registry, is used to find out if a home is free of charges (mortgage) or not. Its cost is about 20 dollars approximately.
Without presenting these two documents to the lender, we will not be able to apply for the loan. For this reason, although neither of them are particularly complicated and long-term procedures, we must take this into account when starting the application.
Who can expedite the loan application?
We assume that we are not talking about a quick loan, but even so, there are those who offer home equity loans more quickly. On its own website we can find information about the path the process takes:
- On the day of the request, they contact the user to start the process.
- In 2 or 3 days an appraiser values the home to calculate the amount they can lend.
- In about 10 days everything is resolved and all that remains is to sign to be able to make the transfer that same day.
In addition, we have the peace of mind that we are dealing with a company with experience in the sector of home equity loans. As if that were not enough, its conditions are very attractive: we can get up to 300,000 dollars to return in 20 years with a TIN that starts from 8%.