Best Tips For Home Equity Loan Approval

Here are the best tips for you to try to get approval for a home equity loan.

Tip 1: Quantify your equity

Keep at least 15%-20% equity in your house so it is sufficient to borrow from.

2: Check credit score

Review your credit score and then improve it to over 700 to qualify for the best loan offer.

Tip 3: Browse multiple lender choices

Shop around different lenders to see if you qualify for one with simple borrower requirements.

Tip 4: Limit your DTI ratio

Keep your DTI ratio below 43% of your gross income per month.

Tip 5: Show you have a steady income

Don't make any huge employment changes since lenders will check if you have a steady, recurring income.

Tip 6: Avoid creating new credit applications

Limit applying for multiple new credit options to avoid appearing financially irresponsible to lenders.
Updated on: March 18, 2024
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