What Documents Are Needed to Put One's House Up As Collateral?
If you're putting your house up as collateral you're going to have to produce a few very specific and very important documents. Learn what documents are needed to put your house up as collateral with help from a licensed California real estate broker in this free video clip.
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What documents are needed to put one's house up as collateral? Hello, I'm Jack McLaughlin, licensed broker and president of My Broker Donates. Today we're gonna talk about the documents needed to get a home equity loan, and as always, I want you to remember the first rule of real estate, no surprises. In general, home equity loans offer lower interest rates than an unsecured loan, or loans that have been secured with a different type of collateral, such as a car or jewelry. In many states the interest you pay on a home equity loan is tax deductible at the end of the year, which also helps lower the cost. Most home equity loans require good to excellent credit history, and reasonable loan to value and combined loan to value ratios. Home equity loans come in two types, closed end and open end HELOC. Both are usually referred to with second mortgages because they are secured against the value of the property, just like a traditional mortgage. Home equity loans and lines of credit are usually, but not always, for shorter term than first mortgages. You'll need these documents to get your money. Number one, a credit report. Number two, a professional appraisal. Third, a title report, the lender-supplied mortgage or trust deed and closing fees. Remember, no surprises. Before applying, make sure that your credit is A1, and there's just plenty of equity in your house. We're brokers, we're not attorneys or tax experts. If you have specific questions, contact a local Realtor or mortgage professional. If you don't know one, we can connect you to a great one free. Thanks for tuning in, and remember, have fun with real estate.