Getting a home equity loan can take anywhere from two weeks to two months. According to data from the Mortgage Bankers Association (MBA), the industry average is 39 days.[1] But your exact timeline depends on your lender and how well you’ve prepared to apply for the loan.
How fast you need the money from your home equity loan likely depends on what you want to use it for. According to the MBA, 46% of homeowners surveyed planned on using a home equity loan for a home renovation. And 39% of respondents used a home equity loan as a debt consolidation lever.[2] If you need your money fast, work with a highly responsive lender and get your paperwork ready before you apply.
Here’s how to prepare ahead of time to reduce delays and get your home equity loan funded as quickly as possible.
Home equity loan timeline: what to expect
Although the industry average is 39 days, some lenders can fund a home equity loan in just two weeks or less. There’s a lot of timeline variability between lenders and dependsing on how complex your financial situation is.
Some portions of the home equity loan timeline are out of your lender’s control, like appraisal scheduling and underwriting reviews. But there’s a lot that comes down to how responsive your lender is and how responsive you are to the paperwork requirements.
| Home equity loan stage | Approximate time |
|---|---|
| Application submission and initial credit check | Usually same day |
| Receive Loan Estimate from lender | Up to 3 business days after applying (federal rule)[3] |
| Hard credit check and underwriting review | 1–4 weeks |
| Home appraisal | 1–2 weeks |
| Receive Closing Disclosure from lender | At least 3 business days before closing (federal rule)[4] |
| Closing | 1 day |
| Fund disbursement | 3–7 days |
How to speed up getting a home equity loan
You might be considering a time-sensitive home upgrade like replacing the windows before the rainy season hits. Or you might want to consolidate high-interest credit card debt before its introductory APR period ends. Lucky for you, the average U.S. homeowner is sitting on $299,000 in home equity. [5] That’s significant money if you need access to a lot of cash quickly.
To speed up the process of getting access to your home equity, here are some proactive steps you can take throughout the process:
- Check your credit: See where your credit score is at and review your credit report to check for errors that are dragging your credit down.
- Gather your documents: Put a file together of supporting paperwork that your lender might require, like pay stubs, W-2s, banking and mortgage statements, home insurance policies, tax returns, etc.
- Watch your inbox: Responsiveness goes both ways. Keep an eye on your inbox or voicemail for questions or requests from the lender. Try to provide necessary paperwork or signatures within the same day.
- Be flexible with scheduling: The appraisal stage is one of the lengthier steps of the process. Keeping your availability flexible to accommodate the appraiser’s availability can go a long way.
- Avoid big financial changes: When you’re in the middle of the home equity loan process, lenders don’t like surprise financial changes. This includes closing or opening accounts, transferring large sums between accounts, or sizable, out-of-the-ordinary deposits. Big changes can flag deeper underwriting scrutiny, which can mean more paperwork and more time.
Lenders also have different response times, depending on their internal procedures and resources. Choose a lender that has a reputation for being communicative and responsive. Reading through third-party reviews from borrowers who’ve worked directly with the lender and keep an eye out for problematic patterns.
For speedy, personalized guidance, get your home equity loan with Best Interest Financial. We work around the clock to keep your loan moving and we have a 4.9 rating on Google. Get a 60-second quote from Best Interest Financial today.
Is getting a home equity loan faster than a HELOC?
No, home equity loans and HELOCs generally follow the same timeline so one isn’t always faster than the other. The main difference is how they work. Home equity loans are closed-end loans that are useful for large, fixed expenses that are a one-time occurrence.
By comparison, home equity lines of credit (HELOCs) are open-end accounts that are useful if you’re renovating your home, don’t know the final cost of the project, and might want to make a few different draws from the account.[6]
Bernie Frascarelli, executive loan officer at Best Interest Financial, explains that the biggest difference between a home equity loan and a HELOC is how the funding is provided.
“I just want everyone to realize that one comes on a card [HELOCs] and the other one [home equity loans], you get the full money upfront,” says Frascarelli.
Ready to apply for a home equity loan?
Our team of loan officers at Best Interest Financial can help filter the noise and get you a home equity loan fast. From day one, we’ll guide you through the process, answer your questions, and present creative solutions that get you to your financing goals. Get started with a 60-second quote from Best Interest.
FAQ
Can you be denied for a home equity loan?
Yes, you can be denied a home equity loan for insufficient equity, insufficient income, a high debt-to-income ratio, or a low credit score. Property concerns, like poor structural condition, can also result in a denied application.
What’s the payment on a $50,000 home equity loan?
Your monthly payment on a $50,000 home equity loan depends on your rate (whether it’s fixed or variable) and your loan term. For example, a $50,000 home equity loan at 7.5% for a 10-year term would be about $593.51 per month.
Disclaimer: The information provided in this article is for informational and educational purposes only. It is not intended as legal, financial, investment, or tax advice, and should not be relied upon as such. Mortgage rates, terms, products, and eligibility requirements are subject to change without notice and vary based on individual circumstances, credit profile, property type, loan amount, and other factors. All loans are subject to credit approval. This content does not constitute a commitment to lend or an offer of specific loan terms. For personalized mortgage advice and to discuss loan products that may be suitable for your situation, please contact one of our licensed loan officers.