Why lenders need documents
A home equity loan is secured by your home, so the lender checks that you can afford the new payment and that the home supports the loan. Documents confirm your income, your existing debts and the property's details. The exact list depends on your situation.
Before you start
It helps to set aside a little time to gather documents in one folder before you apply. Download statements as PDFs where you can, and name them clearly. If something is missing, your loan team will tell you, but a complete first package is often the biggest time saver.
Keep in mind that lenders may ask follow-up questions about large deposits, new debts or gaps in employment. Short written explanations, with supporting documents, usually resolve them.
Income documents
- Recent pay stubs.
- W-2s from the past two years.
- Tax returns, especially if you're self-employed or have rental or other income.
- Award letters for Social Security, pension or other benefits, if they apply.
Home and mortgage documents
- Your most recent first mortgage statement.
- Your homeowners insurance declarations page.
- Statements for any home equity line of credit, showing the balance and credit limit.
- Property tax information, if your taxes aren't escrowed.
Identity and assets
- A government-issued photo ID.
- Recent bank statements, if requested.
- Information for each person who owns the home or will be on the loan.
If you have a HELOC
Include its statement and limit. Lenders may count the full credit limit of a line, not just what you've drawn, toward your combined loan-to-value. Paying down or closing an unused line can make more room to borrow.
Speed things up
Before closing, you'll review and sign your loan documents. Bring a valid photo ID, and make sure the names on your ID match the names on the loan.
- Upload everything at once, rather than in pieces.
- Make sure each page is clear and complete, including blank pages that are part of a statement.
- Answer questions from your loan team quickly.
- Tell your loan consultant early about anything unusual, like a recent job change.
What CapCenter typically doesn't need
For CapCenter home equity loans, an appraisal isn't required in most cases. We typically use automated valuation models to estimate your home's value, which keeps things moving. Most CapCenter home equity loans close in a few weeks.
