Applying for a Home Equity Loan in Texas
A home equity loan can provide you with the immediate cash you need when you borrow against the equity you have paid into your home. Texas has strict laws concerning home equity or cash out loans and it can be more difficult to get these types of loans here than in other states. The information below can help you understand what you need to know about applying for a Texas home equity loan.
Special Restrictions for Home Equity Loans in Texas
Your choices are limited when it comes to finding a lender that will offer a cash-out loan in Texas. Many financial institutes do not want to have to adhere to the strict guidelines or jump through the paperwork hoops that are required for this type of loan.
- Your home equity loan is limited to 80% LTV or loan to value.
- You can only get one Texas home equity loan in a year’s time.
- No more than 3% of the loan can be charged to the home owner and this is to include the closing costs.
- Your loan application must wait 12 days before being processed as a cooling off period.
- You must be given the HUD-1 statement of settlement at least one day before closing on the loan.
The Texas Home Equity Loan Application Process
Applying for the home equity loan in Texas will be about the same as in any other state. You will fill out an application with your chosen lender and a credit report will be pulled. You will then be given a good faith estimate within 3 days. Once you review all of the offers and choose a lender, you will be given a packet that includes the necessary paperwork and a list of documents you must provide.
When all paperwork has been signed and the 12 day cooling off period has passed, the appraisal will be done and the title will be run. The loan will then be underwritten and eventually approved or denied.
Applying for a home equity loan in Texas is slightly more difficult than in other states because of the rules and regulations regarding this type of lending. The information above can help you better understand what you will face when you apply for a cash-out loan in Texas.
