Home Equity Loan Application: Fill & Download for Free

“What happens if it gets dropped?”I had been explaining to a vice president of a major bank how the system would take a home equity loan application and send it to the data center for processing. For various reasons (limitations of that organization and data center) it would be printed out and the paper handled by personnel there to take it to the next stage.At first I misunderstood him and explained how the software would re-try sending for a configurable number of tries or days.Then I understood what he was really asking - what if the person taking the paper off the stack “dropped it on the floor” (a metaphor for any error that interrupted the completion of any processing).At first I was boggled. “What happens if there’s a nuclear attack? It’s outside the control of the system, I can’t do anything about it.”Hey, I was young. I later realized that in this case I had dropped the ball - a user had explained a problem to me, and instead of focusing on solving the problem I deflected, dodged and passed the buck.In fact, with only a little thought I realized that there were several things I could have done to mitigate the risk. I could have kept track of the number of applications and included a running count in the headers for each one, and I could have cached the data for a set period to enable a resend if requested.I could have taken the larger perspective of figuring out how to make my customer’s problems better, instead of being preoccupied with the limits of my role.

If you plan to take a loan to remodel your home, here are the pros and cons of using a home equity loan or a personal loan:Pros of Home Equity Loan1. Low-interest rates: Home equity loans are taken against the property purchased. You mortgage your equity on the property in return for the loan. Due to the pledging of collateral, you can get a loan at low-interest rates.2. Tax Saving: Home equity loans are tax-deductible.3. Ease of approval: Instead of opening another credit line, use your equity in the property is much easier. A home equity loan or a top-up loan will be approved more quickly since you already have a relationship with the lender.Cons of Home Equity Loan1. Mortgage: Since it is a secured loan, adding it to your pre-existing debt may cause problems. If you are unable to repay the loan, you can lose the property.2. Market prices: If the property prices dive in the future, you may end up losing a bigger share of your property and there will be a significant spike in the interest rate / tenure (or both). .Pros of a Personal Loan1. Dedicated home improvement loans: Lenders offer home improvement loans which are personal loans dedicated to serving this purpose.2. Unsecured loan: The loan is unsecured, which means that you don’t have to mortgage any asset3. Quick and hassle-free: You can apply for a personal loan online and get an amount upto INR 30 lakhs (max. loan amount depends on your eligibility) disbursed within 24 hours* of approval, after your application has successfully cleared all required verification checks. .4. Fixed Interest rates: Most lenders provide personal loans at fixed interest rates, which are not subject to market changes. Thus, your EMI and tenure remains stable throughout the tenure of the loan.Cons of a Personal Loan1. Higher interest rate: Since it is an unsecured loan, the interest rates are higher than that for secured loans.2. No tax benefits: Since personal loans are not taxable, you do not receive any tax benefit.*Depends on various criteria, including the lender’s policy at the time of loan application.

Using equity to buy a new home is a great strategy, whether you’re hoping to trade up into a bigger house or downsize your monthly expenses.Pulling together the down payment for a new house while getting your current property ready for sale is a double burden. At the same time, you’ll have to manage moving expenses. Buying a new home with equity can help keep your savings intact while you cover all these costs.If you’re wondering how to buy a new home with an existing mortgage, we’re here to help. Here are 4 common ways of using equity to purchase a new home:Home Equity Loans: A home equity loan is often the first option homeowners explore because it’s a familiar tool. A home equity loan is a bank loan that uses your house as collateral, much like your original mortgage.AdvantagesOffer some of the lowest rates available to consumers.Are available through your existing bank relationship.May include interest that is tax-deductible, depending on how you use the funds.DisadvantagesYou risk your current home by pledging it as collateral. If you can’t sell and you lose your income, you could forfeit your house.If the market declines and you can’t sell the house for as much as you borrowed, you’ll be in debt.Your lender may dictate terms you don’t like, such as not allowing you to rent out your house while you look for a buyer.Application fees, appraisal fees, and underwriting fees can be high.If you’re still paying on your mortgage, you’ll have to afford both payments each month.Terms, Conditions, and RequirementsLoan terms range from 5-30 years.Interest rates for home equity loans are fixed.You can usually borrow 80–90% of your home’s equity.You need a good credit score. Most lenders look for 700 or above.Your debt-to-income ratio should be 40% or less.You’ll need proof of income and ability to repay the loan.Home Equity Line of Credit: Another tool for using equity to buy a new home is a home equity line of credit, or HELOC. Like a home equity loan, you apply for a HELOC through a bank and pledge your house as collateral.AdvantagesAllows you to take out debt as you need cash, so it’s a flexible tool if you’re not sure how much money you’ll need.Comes with low rates compared to personal loans or credit cards.Is available through your existing bank.May include interest that is tax-deductible.Provides flexible repayment options.DisadvantagesAs with a home equity loan, you may risk losing your existing house.Variable interest rates mean you can’t be sure of your total expense in advance.If you’re not disciplined, having a high credit limit could encourage you to borrow more than you need — or can repay.If you’re still paying on your mortgage, you’ll have to afford both payments each month.Terms, Conditions, and RequirementsLoan terms range from 5-10 years.Interest rate is variable.You can usually borrow 80–90% of your home’s equity.You need a good credit score. Most lenders will want 700 or above.Your debt-to-income ratio should be 40% or less.You’ll need proof of income and ability to repay the loan.Bridge Loans: Another method of using equity for a new home is a short-term loan called a bridge loan. These are designed especially for homeowners who are managing the transition from one house to another.AdvantagesShort terms with clear end dates.Payments that can be deferred until after you sell your house.DisadvantagesHigher rates than a home equity loan or HELOC.Smaller loan amounts.Multiple payments if your loans overlap.Terms, Conditions, and RequirementsLoan terms range from 6 months to 3 years.Rates can be fixed or variable.You can usually borrow 80% of your home’s equity.You need a good credit score. Most lenders will want 700 or above.You’ll need proof of income and ability to repay the loan.EasyKnock’s MoveAbility Program: EasyKnock’s MoveAbility is an innovative method of using equity to buy a new home. This sale-leaseback option lets you sell your house for cash and continue to live in it as a tenant for up to a year.AdvantagesLets you stay in your home for up to 18 months while you make repairs and shop for your dream home.Is fast — get cash in hand in just 13 days.Lets you use funds for down payments, home repairs, moving expenses, and more.Helps you pay off your existing mortgage, which will help you qualify for a new one.Allows you to choose when you’re ready to list your home.Comes with low fees: you pay 1.5% of your home’s value and then pay market rent.DisadvantagesYou give up any property appreciation that happens after you become a renter.As a renter, you may need approval to make significant changes to the house.Your rent may be higher than your mortgage payment.Terms, Conditions, and RequirementsMoveAbility is only available to people selling single-family homes, condos, or apartments.With the program, you gain access to up to 75% of your home’s equity.You’ll pay market rent based on similar properties in your area.You can renew your lease for up to 12 months with a renewal fee of 1% of the total purchase price every six months.If you’re curious about this innovative option, read more about the MoveAbility program, and find out your home qualifies.The Final WordIf you want to buy a new home with an existing mortgage, your options include three types of loans or a sale-leaseback program like EasyKnock’s MoveAbility. Getting a loan means going through a bank lending process and then dealing with double payments. A sale-leaseback option like MoveAbility buys you time to shop for the perfect house while giving you the cash you need for home improvements and a down payment.Source: https://www.easyknock.com/blog/an-ingenious-new-way-for-using-equity-to-buy-a-new