Finding out that you need money for a large expense can be very stressful. It’s even more if you aren’t in possession of that money. If you haven’t been able to get approved for a regular loan at your local bank, this might be because of a low credit score or bad reputation with the bank. Rest assured, there are other ways that you can acquire additional funds for something like home renovations, paying off other debt or taking care of medical bills.
If you can convince a financial institution that you will pay off your loaned amount, then you have a much better chance of getting what you need. Collateral is something that makes a big difference to a bank. A home equity loan or a home equity line of credit (HELOC) uses that equity that you have in your home as collateral to ensure that this money will be paid back in the agreed upon time frame. If you aren’t sure where to begin when it comes to applying for one of these products, read on to find out more regarding what banks and institutions provide you this opportunity.
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Using Internet Resources and Lenders
The internet has made it very easy to compare different rates, products and companies. In just a few minutes, you can find dozens of different lenders that provide online mortgage loans to customers all over the country. Each of these lenders will have their own set of terms that you would have to agree upon if you wanted to use their services.
You’ll find some very competitive products and rates this way. With so many different lenders available, they have to find ways to compete with each other and stand out. You can easily compare these different lending networks, and you can choose who you want to apply with once you have done enough research. Once you have transferred over to a specific lender’s website, you will be directed to the more specific terms that you would need to agree to.
Banks
If you have already been turned down for a traditional loan, then you probably have yet to hear from your longtime bank. Don’t completely rule them out when it comes to a home equity loan or home equity line of credit. They may still be able to make this happen for you now that collateral has come into play. You can discuss with one of their representatives what the various rates and fees might be. You may even be able to get a fair deal if you have been with a certain bank for many years
Credit Unions
Credit unions are quite as prevalent as banks are, but they come with their own set of perks. If you are thinking about a HELOC or home equity loan, stop by a credit union in your area to see what they can offer you. Chances are, a credit union will want to secure your business. They’ll try to do this by offering you a very tempting deal. You may be able to get some fees waived or reduced. You might also get a better rate or agreement overall. Don’t be afraid to see if a credit union will match the product that you’ve been offered by a bank online or in the area. They may try to top the offer.
Photo credit: Sharon McCutcheon
