How to Get Approved for a HELOC?

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so in this video we're gonna talk about what do banks and lenders look at when

you're applying for a hew op and how to increase your approval rate when

applying for a HELOC

hey what's going on guys it's Sam Kwak here one of the Kwak Brothers here and

today in this video we're gonna talk about he locks and continued this series

in conversation about home equity line of credit now you're probably looking

into this video because you've checked out some of our other videos on how to

pay off your mortgage faster well in this instance we're gonna talk about how

to get into a home equity line of credit now guys I am NOT a banker I am NOT a

financial adviser so make sure that you don't misconstrue this video as any sort

of banking or financial advice make sure you guys go and actually talk to a

banker and a financial advisor to get further details for your situation now

we may actually have a banker in our podcast and we're gonna go and do a Q&A

with the banker so if you guys want to see that podcast if you guys want to see

us interview a banker about how to specifically apply for a HELOC and

mortgage stick around subscribe to our youtube channel because we're gonna

release that video very soon you do not want to miss it

so from the general stand point of view on getting approved for a keylock what

do banks and lenders really look at when it comes to taking taking a look at your

application generally and and I mean it generally it's HELOC is is is like any

other is like any other loan process and loan application they're gonna look at

your credit they can look at your tax returns they're gonna look at your

experience if you're looking to do real estate investing and they're gonna also

look at your overall financial strength and also your financial statement so one

of the first things that we want to talk about is credit they're obviously gonna

take a look at your credit to see what type of credit you have your credit

history your credit report and there's this misconception out there that credit

score alone approves for a loan now I know there are some certain loan

products out there where they're not gonna even look at your credit maybe

maybe not but I'm gonna go ahead and give you guys more mainstream ideas

there are extremes right but I'm gonna give you more the mainstream idea so

it's really easy to misconstrue that credit score's alone will give you an

approval which is not true so credit score's

right does not get you proof for loans it gets you declined and here's what i

mean when it comes to applying for a loan it's kind of like the a CT or SAT

score write the standard exam for college entrance if I were if I were to

be university or college and I'm looking for students for at least 30 in there a

CT scores and 30 and on I'm gonna go and consider their application 30 and below

I'm gonna decline them because they're not really quite up to our standards so

the banks kind of look at the same way they have a set threshold as far as what

credit score they're looking for above that credit score they're gonna say okay

we'll go and take a look and see what we can do to prove or further further

investigate and underwrite this application now certain banks may say

underneath this credit score under the threshold we're just gonna outright

decline right there's almost no chance of this person getting approved for a

loan notice I said almost right so there's always exceptions there's always

extremes and and different loopholes right but as far as credit scores credit

scores alone guys aren't the decision-making factors okay very

important that we go through that also the banks are gonna look at your tax

return so most likely they'll look at your last two years of tax return

it is 2018 so they're gonna look at 2017 and 2016 tax return come next year in

2019 they would like to see the most recent tax return which will be the 2018

and they want to see a 2017 tax return all this because they want to make sure

they verify that you have them you know you're making them money right you're

you got the the means to pay for the loan right that's really important for

the banks and making sure that you're stable you have stable employment the

certain banks may also ask you to turn in pay stubs or your w-2 or your a bank

statement now I did I have seen banks where for example if you're

self-employed your tax returns may not look good as some of the other w-2

counterparts so I I have seen banks take a look at your bank statements the

statements to see how much cash you're holding and what sort of asset you have

to make sure that you're being bankable the banks also may see that may also

check to see if you have any other assets so do you have any vested stocks

bonds mutual funds retirement plan made me see if you have any other real estate

do you have invested in gold or commodities so

they want to see the overall debt and they also want to see the overall asset

and banks preferably will like for you to fill out what's called a financial

statement which is usually one or two pages summary of your debt and your and

your asset which gives which gives you the equity of your your net worth so

that's what the banks would want to see and the application guys and this is a

little tip by the insider tip that I've gotten over the years from experts and

bankers banks also see how well you fill out your application right if they see

empty spots right empty you know form then you're less likely to be looked

upon as a favorable application right they want to see that you fill out your

phone number if you have a second phone number great they want to see email

address right how to best contact you so the more information they have about you

the more likelihood that they can get more of an accurate decision in an

accurate data for them to make an accurate decision based on your

situation now of course as I said there's always extremes there's always

you know exceptions right in caveat so it's really important that you guys take

this more of us as a general statement or general conversation more so than any

specifics so like I said guys we're gonna definitely have a Q&A interview

with a banker right join us to address any specific questions that you may have

in the meantime if you want me to ask any questions to the banker in your

behalf guys go ahead and comment down below we'd love to get some questions

from you too the banker or if you want to ask me questions awesome I'll give

you guys a little bonus tip before we end this video if you're looking to get

a HELOC a home equity line of credit on a rental property it is possible I know

there's some people that say well it's impossible for you to get a HELOC on a

rental property well that's not true again we don't want to speak in

absolutes there's always exceptions there's always you know situations that

may allow the banks or allow an investor to be approved for a HELOC so yes it is

entirely possible for you to get approved for a home equity line of

credit on a rental property generally what the banks will want to see is they

want to see a ton of experience from you ton of experience and also

that you're stable right obviously the bank doesn't want to lend on an LLC or a

corporation especially when you're doing a HELOC yes it is possible for you guy

he lops on around a property while it's rare it is possible so guys stick around

do subscribe I will I will get a banker to come on in our show we may just as

well turn this into a live video so we'll do this live broadcast where

you're gonna where do you guys can participate ask questions and get your

answers live from a real banker instead of me because I'm not a banker but I'm

just speaking to you guys with my experience dealing with the banks for

many years so thank you for watching guys be sure to stick around wait for

that podcast to come around because I'm excited for it and I think you guys are

as well so guys take care well hello there you made it to the end of this

video congratulations and that probably means that you liked our video and you

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