People have asked if it is possible to close on a Home Equity Line of Credit (HELOC) the same day they close on the purchase of Real Estate that they would like the HELOC against. Although there could be circumstances in which one could close on a HELOC on the same day they close on the real estate that they will take the HELOC against, it is unlikely to get a HELOC on the same day you close on the real estate. The process of obtaining a HELOC typically involves several steps and takes some time. Here are a few reasons why it is unlikely to get a HELOC on the same day:
- Application and Documentation: To apply for a HELOC, you typically need to complete an application and provide supporting documentation, such as proof of income, credit history, and information about the property. This process requires time to gather and submit the necessary paperwork.
- Property Valuation and Assessment: Lenders generally require a valuation or appraisal of the property to determine its current market value. This appraisal process can take several days to complete, and the lender may need to review the appraisal report before proceeding with the HELOC application.
- Underwriting and Approval: Once the application and documentation are submitted, the lender needs to review and underwrite the application. This involves assessing factors such as creditworthiness, debt-to-income ratio, and the property’s value. The underwriting process can take several days or even weeks, depending on the lender’s workload and processes.
- Closing and Funding: Once the HELOC application is approved, there is typically a closing process where you sign the necessary documents. This process may involve scheduling an appointment with a notary or attorney. After the closing, there may be a waiting period for the funds to be disbursed, as lenders need time to process the loan and set up the line of credit.
While it is possible to expedite the HELOC process in certain cases, obtaining a HELOC on the same day as the real estate closing is highly unlikely. Of course you will need to consult with a specific lender or financial institution to understand their timeline and their requirements for obtaining a HELOC based on your individual circumstances. If you need a lender please feel free to contact me!
Looking to buy or sell on LBI? Call or text me at 609-300-3899.
Email: lbideidre@gmail.com
Insta: deidre_martin_lbi
Website: lbideidre.com