Are you thinking of taking a Home equity line of credit from Wells Fargo? If you are then this post is a must-read for you. This article contains all the pieces of information you need to successfully take out a home equity line of credit from Wells Fargo.
Home Equity Line Of Credit Wells Fargo
Before I go any further in this post, here is something that you should know if you don’t know already. Wells Fargo as of May 2022, temporarily put their home equity line of credit program on hold. The reason for this is due to the uncertainties surrounding the housing market over the coronavirus pandemic. And as of April 2020, the financial institution stopped accepting new applications.
The better option currently available for customers of wells Fargo to get access to their home equity is via cash-out refinance and the financial institution has not yet announced when the hold will end in regards to their home equity line of credit program.
Wells Fargo HELOC Terms
It might interest you to know that the institution has some unique HELOC terms. And hopefully, their terms will still be available to customers when the program returns. Wells Fargo HELOC offered principal-reducing payments. With this, eligible customers can easily pay down the principal during the draw time and in the process reduce the total amount of interest that they will have to pay.
As a customer, you should also know that your variable interest rate will not increase by more than 2% per annum. And you will never have to pay over 7% over the period of the loan. You can also choose to convert all of your balance or part of it to a fixed rate during the draw period of time.
The institution also offers customer discounts. The best rates are kept for customers that set up automatic payments from their Wells Fargo checking account. There are also no closing costs or annual fees with wells Fargo HELOCs. The lender is responsible for covering the closing costs and there are no charges in regards to annual or early payments.
Home Equity Line Of Credit Wells Fargo Eligibility
The financial institution has laid up its eligibility requirements for intending customers on its website. You will need to have a good to excellent credit of 700 and better in order to qualify for its HELOC. The lender also says that it will consider people with fair credit but will however charge more expensive rates.
Wells Fargo also accepts a debt-to-income ratio of 43% or even fewer asides from credit. It also accepts a loan–to–value ratio of up to 85%. This means that for instance if your home is worth $100,000 and then your mortgage balance is $60,000 that means you will have $40,000 in equity in your home. With this, you may qualify to borrow up to $34,000 of that equity.
How to Apply For A Wells Fargo HELOC
Applying for a HELOC from wells Fargo is easy and straightforward. The best and fastest way to do this is online. And to do this, follow the steps below;
- First, go to the wells Fargo official website.
- Go to personal and choose or select loans and credit.
- Click on home equity lines and tap on the ‘apply now’ button.
- Next, scan or go through the credit, home equity, and debt-to-income requirements in order to make sure that you qualify for a loan. And after making sure, click on the ‘continue online’ tab.
- You will then have to select between an individual or joint loan. If you are a Wells Fargo customer, check the box and click on the continue tab.
- Provide and enter your contact and personal details, financial assets, income, your type of property and value, and also the amount that you are hoping to borrow.
- Lastly, submit your application.
Your application will be reviewed by a loan officer. The loan officer will also verify your identity and confirm the value of your home through a drive-by or a professional appraisal. And everything checks out, wells Fargo will open your home equity account. And after three days of closing, you should be able to get access to your funds.
Required Documentation by Wells Fargo
Before you will be approved, the lender is going to request the following set of documentation;
- Your social security number both for you and your co-borrower if available.
- Your financial assets and income details.
- Debt obligation, for instance, child support.
- Your mortgage balance.
- Government-issued photo ID or driver’s license.
- The type and location of your property.
- An estimated value of your property and so many more.
These are just about most of the documents that will be required by the lender. So it is very important that you have these things in place before you start with the application process.