For those who don’t know, the Home equity loans allow you to have a stipulated amount of money to cover your expenses or financial needs, using as a guarantee the net price of your home. It is a very good option if you need a large amount of money and have a home owned.
Actually, these types of loans are very common. Especially when we need financial solvency in the short or medium term, either to invest in a personal project or simply to cover our expenses.
Although when applying for this type of loans and loans with mortgage guarantee, it must be taken into account that in the case of being able to meet the stipulated installments and that we have accepted in the contract, we can lose the house or house used as collateral.
Requirements to apply for a home equity loan
Although it seems that a loan with a property guarantee could have many requirements, the reality is different. You only need to meet a couple of requirements so that the amount you request is granted. We must present two essential documents to the borrowing bank or financial institutions:
- Our ID to confirm our coming of age. This is a common requirement for all loans and credits, so it is not a surprise. It is as simple to certify as presenting our ID or identity document.
- The ownership of a property that we will use as collateral. That is, the deeds of the apartment, house or house that we will use with guarantee or the document that accredits us as property owners.
Some entities may ask you for some additional information, but they are not strictly necessary to apply for a home equity loan.
Who can apply for these loans with a housing guarantee?
As for the applicants, any person who has a property in their name is able to apply for this type of home equity loans. One of the singularities of this type of credit is the possibility of asking for help even if we are registered in the delinquency register or lists of defaulters, such as Credit Institutions.
In addition, if it is not necessary to receive any type of income. In case you cannot afford the payment, the entity can appropriate the property as a payment for the debt.
The risk of this type of home equity loans is precisely that: not being able to meet the stipulated payments. As a consequence we would find the loss of the house used as collateral. Although financial credit institutions facilitate the payment of these fees to the fullest thanks to extensions to prevent the house from being lost.
How much can I get with a loan with a mortgage guarantee?
Actually the figure will depend on several factors and that depends on each bank. Obviously the cadastral value of the property will directly influence, it is more complicated to obtain for example a loan of $ 300,000 if your home is valued at $ 30,000. We must be realistic in this regard before requesting credit from the entity.
On the other hand it is possible that some entities take into account if you are on a list of delinquents such as Credit Institutions. If you are, the ideal is to settle the debt before applying for a new loan.
If what you want is to reunify your debts, we also have options in Good Finance to recommend collaborating entities specialized in these types of credits such as E-Money Credit or Good Credit.