What happens between the first call and funding
Seven steps, and where applications actually slow down.
1. Talk it through
Property, rough value, what you owe, how much you need and what for. This is also where the things that decide eligibility come up: a purchase or title change in the last 90 days, a reverse mortgage or second lien, a Mello-Roos district, or ownership through an LLC.
2. Soft credit check
A soft pull shows where your credit stands without affecting your score. See credit score requirements.
3. Valuation
An AVM comes first. If one isn’t available or reliable enough, a desktop appraisal is normally used, which includes a condition rating. Unusual homes like Eichlers and estate lots are where this step takes longer.
4. Verify identity and income
Both are verified during the application. State your total annual gross income exactly, and finish within 14 days, or the application expires. If verified income falls short, you can link another source, choose a lower offer if you qualify, or use assets or eligible debt payoffs.
Have these ready: online login details for your bank, your tax-preparation service or IRS.gov account, or your payroll provider; a digital copy of your most recent paystub if you’re a W-2 employee; and your most recent award letter if you receive Social Security, VA, pension or annuity income. Printed statements and scanned documents aren’t accepted. In California, a spouse’s income can be included. Self-employed? See how business income is verified.
5. Review your offer and eligible debt payoffs
You may see one offer or several, depending on your application. When there are several, you choose the trade-off, such as a lower rate or lower upfront costs rolled into the line.
Eligible debts may be paid off at closing. The lender’s system determines which accounts on your credit report and title are eligible, so not every account will be, and accounts can’t be added manually. You review the debts marked eligible and select which to pay. Eligible types include credit cards, personal loans, auto loans, home improvement loans, existing liens. Paying off credit cards to help you qualify requires a 680+ credit score and no charged-off card accounts.
6. Lien payoff statements
If an existing lien is being paid off, the lienholder has to provide a payoff statement, which can take up to 14 days, and final underwriting waits for it. You may be asked to sign an authorization or call your servicer.
7. Sign and fund
You sign with a notary. On a primary residence, federal law gives you three business days to cancel, and funds can’t be sent until that ends. Funds are then sent and typically arrive in 2–3 business days. Payments to creditors for eligible debt payoffs can take up to 7 business days after funding.
What adds time
- A desktop appraisal, when an AVM value isn’t available or reliable enough.
- A lien payoff statement, which can take up to 14 days.
- Identity and income verification, especially if documents are slow to arrive.
- Ownership documents, such as a trust certification.
Keep the application moving
- Finish verification promptly. Applications left unfinished expire after 14 days.
- Don’t apply for other credit or open new accounts until you’ve funded.
- Keep every account current and your bank accounts positive.
- If you’re paying off a lien, contact your servicer as soon as you’re asked.
Start the conversation
The first call takes about fifteen minutes and costs nothing.
These are the requirements for the home equity line we place. Other lenders set their own guidelines, and some are more flexible.
Questions about the process
In California, yes. It is a community-property state, so a spouse is added as a signer on the home equity line so they are aware of the lien on the home. Their credit isn’t pulled and they aren’t financially responsible for the line. A prenuptial agreement doesn’t change this.
No. Powers of attorney aren’t accepted; every owner on title signs in person with the online notary, or in person where the county requires a wet signature.
Unfreeze it with Experian before you start, and keep it unfrozen until the hard pull is complete; a frozen file stops the application at the credit step.
Wait 45 days after the refinance records with the county, so the new lien reports correctly on your credit and title. The same 45-day wait applies between one line and a second application.
Yes. As you repay, you can draw again up to the original credit limit during the draw period, in draws of $500 or more. Your credit isn’t re-pulled for a redraw.
It depends on the application. What adds time before signing: a desktop appraisal, a lien payoff statement (up to 14 days), identity or income verification, and ownership documents such as a trust certification. Funds are sent after you sign with a notary and any rescission period ends (three business days on a primary residence), then typically arrive in 2–3 business days.
No. The first check is a soft pull. A hard inquiry only happens later in the application.
A federal right to cancel within three business days of signing a loan secured by your primary residence. Funds can’t be sent until it ends.
Applications left unfinished at the identity, income or asset verification step expire after 14 days. You can reapply and finish promptly.
These are the requirements for the home equity line we place. Other lenders set their own guidelines, and some are more flexible.