Financing in Grand Blanc>Question Details

Nadia, Home Buyer in Grand Blanc, MI

we are buying a new home with about 40k equity. Can we take out a 10k home equity at time of closing?

Asked by Nadia, Grand Blanc, MI Mon Mar 3, 2008

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Hi Nadia! In most cases, you can get a HELOC simotaneously with your first mortgage. It will depend on your Combined Loan to Value (CLTV), Credit Score and Total Debt to Income Ratio. If you plan to use the money immediately, you may want to also look into a fixed rate second also, just so you can compare the two.

Many lenders offer this with a first mortgage closing. Some lenders cannot or will not offer HELOCS or fixed seconds any longer. Your bigger banks will do it if you qualify for it. Everyone's really tightened up on these second leins, so you have to be pretty clean to get one these days.

0 votes Thank Flag Link Fri Mar 7, 2008
Nadia, just like Gary said you should check with your lender. I am not so sure though. I guess it depends if you are planning on using this for fixing up the property or if you are wanting to buy a car or pay off a credit card or something like that. If you are using it for the property it maybe your lender would structure it as a construction loan.

I have understood it from a lender that I use that you can not pull out equity at the time of a purchase. However, later you could pull out equity in a few months. Again though always check with your lender. Mortgage programs change all the time!

I hope this information helps! Best Wishes!
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0 votes Thank Flag Link Mon Mar 3, 2008
You can probably do an equity line at closing, but you have to check with your lender to make sure. All loans are different.
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0 votes Thank Flag Link Mon Mar 3, 2008
Nadia, I suggest speaking with your lender. There are programs that allow you to get a mortgage based upon the appraised value of a property after improvements.
0 votes Thank Flag Link Mon Mar 3, 2008
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