About Low Interest Home Equity Loans
Lenders who offer low
interest home equity loans tend to have higher qualifications than those lenders
who offer higher interest home equity loans. In most cases you will need to have
superior credit in order to qualify for these loans. Therefore, if you have a
credit score under 700 you most likely won't qualify for a low interest loan.
However, every lender will have a different cut off rate.
The next thing
that you will need to qualify for low interest home equity loans is the correct
kind of income statistics. Lenders look at three different aspects of your income.
First they look at what type of income you have. Generally if you are self-employed
you will have a tougher time finding a lender to work with then if you have a
regular job. Secondly lenders look at how long you have had your current job or
business. Most lenders require that you have been employed at least a year with
your current employer before they will consider you for a loan. Finally they will
look at how much you make in a year and how consistent your income is.
third thing that lenders will look at when you apply for low interest home equity
loans is how much your home is worth and how much equity you have in your home.
If you have a lot of equity in your home then you will probably find it easier
to find a good home equity loan. However, if you purchased your home only a few
years ago and you don't have a lot of equity yet then you may have to search for
a lender that offers both low interest rates and a 125 percent home equity loan.
If you don't qualify for low interest home equity loans right now there
are things that you can do to help yourself qualify for a loan later on. First
you should request a copy of your credit report. Review the report and look for
errors. If you find a mistake right to the credit reporting agency and inform
them of the mistake. Next you can improve your credit rating by paying down your
credit cards. Start with the newest credit cards first as they carry more weight
than older debts do. Finally, if you were denied because of an employment problem
then you can try to correct the problem. You may want to take a second job, or
simply wait a year to meet the lenders employment longevity requirements.