How To Qualify For A HELOC To Use The Mortgage Accelerator Strategy

The Secret Steps...To Qualify For A HELOC In This Market

Did you know if you have a Home Equity Line of Credit (HELOC) in today’s market, you can convert a 5.5% rate into 3% rate of interest? With the tax savings and low rates it is a powerful tool for any homeowner.

And one way to use a HELOC is to completely eliminate your mortgage debt and save thousands without changing your lifestyle.

But there is one catch. You need a HELOC. If you have one already, congratulations.

If you cannot get a HELOC or for some reason your HELOC has been frozen, don’t worry this is not your fault. Other homeowners are faced with the same situation in this market.

“I called my loan officer, they managed to get the application in, the rate is at the lowest point, but the appraisal fell apart,” says Mary Jones, a client using the mortgage acceleration system.

If you have no equity as you have just moved into your home in the last year, it will be frustrating as most banks will deny you a Home Equity Line of Credit. Banks are generally looking to approve a line of credit where you have at least 20% equity in your home.

If you have no equity in your home, you may feel that you are unable or can’t refinance at this point. Sometimes you may not be sure as to whether you have enough equity and don’t know the exact next step.

Here is what to do next

Step 1:

Discuss your options with a loan officer or your banker first. They have the technical knowledge and should be in a position to help you. Once you have done that, then get a second or third opinion.

Step 2:

Most Banks will generally not approve a HELOC when your loan to value is less than 80%. They are swamped with requests and will just reject your application. Do some of the work yourself, and submit this with your application. Find out recent sales in your area, do an online search for home values, figure out what homes have increased in value in your in your area. All of this information will increase the chance of your application being approved.

Step 3:

You may need an appraisal to determine the correct value of your home. Market values are beginning to somewhat stabilizes in some areas of the country. That is in your favor if you need an appraisal to get qualified for a HELOC. Before you get a formal appraisal and spend money, the banks can do an automated appraisal for you. These automated appraisals are based on a computer valuing your home. Most times these could be lower than an appraiser visiting your home and doing a thorough evaluation of your home. I would approach an appraiser and pay the fee when you know your home is worth more than what is shown in the bank appraisal.

If you appraisal comes out too low you can contest this. You can submit additional information on recently sold homes in your area that could be compared with the appraisal value. Ask for a second review of the appraisal.

Step 4:

This is the most important tip of all. When we apply for a HELOC we need to remember our outcome which is to pay off our mortgage. Therefore in order to do that we only need a HELOC value of $7000 to $10000. Most banks deny the use of the HELOC as they think we need a significant balance and we don’t have the equity in our homes to do that.

And the most important question to ask your lender is “how do i qualify for a HELOC of $7,000.” That’s the real secret. Your lender if he is any good will look at your situation and give you the exact steps. It may take a week, a month or a few months but after you follow the steps you are on your way to living debt free.

And then go directly to www.eqxl.com, enter your information into the free calculator and see for yourself how fast you can eliminate your mortgage and save thousands of dollars for your family.

Go directly to Mortgage Accelerator Calculator, enter your information into the free calculator and see for yourself how fast you can eliminate your mortgage and save thousands of dollars for your family.

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