We help take the complexity out of borrowing and provide our customers with fast personalized service
Step 1:
You can apply at your convenience either by calling us or by completing an online application. The application process can be completed in a few minutes.
Step 2:
Once your application has been approved, a Home Loan Advisor will contact you to discuss your application and potential borrowing options.
Step 3:
When you are ready to move forward, we will help you complete the loan process. Your funds can be available to you in as little as 5 days.
Start by applying online now
Applicant Information
- Time at present address
- Social Security number
- W2, current pay stub, and proof of any other current income source. If self employed, prior two years tax returns (all schedules, personal and business).
- Prior three years employment information.
- Divorce decree (if applicable).
- Home Owners Insurance declaration page.
- Second Mortgage payoff information (if applicable).
Depending on your individual application, you may be required to provide more or less information than is listed above. Please use this list as a guide to help you organize your financial information. That way you will have whatever may be needed for your Home Loan Advisor, avoiding any delays in the borrowing process.
Home Equity Basics
What is a Home Equity Loan?
A Home Equity Loan, also known as a second mortgage, allows you to borrow a one-time disbursement of funds, using the equity in your current home or property as collateral. Your interest rate is usually fixed and the loan is amortized over a fixed term. Like a traditional mortgage, you borrow a set amount, you receive the set amount of funds in one disbursement and then you pay that loan back with interest over a set amount of time. Because you have the option to rescind or cancel your loan for up to three business days following the closing, your money will not be distributed until the end of this three day rescission period.
What is a Home Equity Line of Credit?
A Home Equity Line of Credit allows you to periodically access an account of funds via various means, using the equity in your current home or property as collateral. This loan is similar to a credit card account in that you are only charged interest on the outstanding balance, and there is usually a credit limit or maximum that you can draw against. For instance, you may have a credit limit of $100,000, but if you only withdraw $5,000 of that, you will only pay interest on that $5,000. The interest rate is usually tied to the Prime Rate with a margin, and may even be below Prime. Because you have the option to rescind or cancel your loan for up to three business days following the closing, your money will not be accessible until the end of this three day rescission period.
What is the Difference Between a Fixed Rate and a Variable Rate?
With a fixed rate loan/line, the interest rate will not change during the term of the loan. With a variable rate, the interest rate will move up or down, according to a pre-selected index, over the term of the loan. Home Equity loans offer a fixed interest rate, and Home Equity Lines of Credit feature a variable rate.
Will My First Mortgage be Affected by a Home Equity Loan?
No. Your first mortgage balance is used to determine your borrowing options, but your home equity loan/line is separate and has no effect on your first mortgage.
What Can I Use Home Equity Money For?
Home Equity Loans and Lines of Credit can be used for almost anything. The most common uses include debt consolidation, home improvement, and purchase/payoff of auto, boat or other high-ticket items, college tuition and future ready reserve.
Is the Interest Tax Deductible?
In most cases the interest on home equity loans and lines of credit can be tax deductible. Consult your tax advisor about your specific situation.
How Much Can I Borrow?
Typically, your loan/line amount is determined by taking a percentage of your home's fair market value and subtracting the balance of any outstanding mortgages on the property. However, loan amounts are based on credit profile, debt to income, and loan to value guidelines.
How Can I Access My Home Equity Line of Credit?
Your line of credit can be accessed by checks.
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Loan Process
Do I Need a Home Appraisal?
Sometimes we do not need to conduct an appraisal; other times we have to conduct a full appraisal, and there are levels in between. The appraisal costs are paid by Charter One. Only after reviewing your application and collateral information will it be determined whether one is needed for your situation.
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Equity in Home
How do I Figure Out How Much Equity I Have?
To understand how much equity you have in your home, just write down your home's value and then subtract all amounts that are owed on that property. The difference is the amount of equity you have. If you have a property worth $100,000, and the total mortgage balances owed on the property are $80,000, then you have a total of $20,000 in equity. When performing this exercise, just take your best guess as to what your property is worth, use a home value estimator, or ask a banker for other methods of determining value.
What is LTV and Why Does It Matter?
LTV stands for loan-to value. It is the total amount of liens on the
property divided by its fair market value.
Why Should I Use My Equity?
Using the equity in your home is a great way to improve your property, consolidate high-interest debt, finance important life events, or even cover unexpected emergencies. The interest you pay is usually tax deductible. (Consult a tax advisor for more information.)
How Do I Find Out My Home's Value?
When you first apply for a loan, make a reasonable estimate of the value of your home. If you need assistance, there are online tools that may be able to assist you in determining the value of your home. Once you apply, your Home Loan Advisor will be able to provide you with the value of your home.
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Getting a Loan Decision
How is the Lending Decision Made?
When reviewing your application information, an underwriter examines your credit history, your property value, and your debt-to-income ratio. These are the main factors which describe you as a mortgage applicant. This perceived level of risk determines your loan decision as well as your interest rate in some cases.
What Will My Rate Be?
Rates are based on a variety of factors such as the loan purpose, your credit history and ability to repay, the value of the collateral, and the loan amount, to name a few.
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