So You’re Ready for a HELOC – Here Are the Documents You’ll Need

Now that you’re ready to take control of your equity by moving away from an amortization-based mortgage to a Home Equity Line of Credit (HELOC), here are the essential HELOC documents you’ll need to prepare for the application process. As with many types of loans, there’s an application that requires you to provide personal financial information – much like you did with your mortgage.

HELOC Documents You’ll Need to Start Your Application

Because each lender is different, they all have their specific list of requirements. Here are the basics that most financial institutions will require. (Remember, this is a general list – your lender’s may look similar but differ at a point or two.)

1. Personal Information

To start the process, you must provide your social security number and date of birth, as well as marital, employment, and residential status. Next is a copy of your government-issued ID, monthly income from all sources, monthly debt obligations, financial assets, your employer’s name, your occupation and length of time in the position.

2. Individual Financial Data

In order to get a good picture of your financial standing, you’ll need to gather and submit proof of income. This will include your most recent pay stub that reflects that last 30 days of employment and year-to-date earnings. Two years of W-2s and your last two tax returns will serve to confirm consistent income. Anyone who will be named on the HELOC will need to provide these documents. In addition, you’ll want to be prepared to provide details and statements about all of your debts and other assets.

If you’re self-employed, you’ll need your IRS tax return documents and K-1 forms from any partnership, LLC, or S Corporation for the last two years. Those who receive Social Security, pension or retirement benefits must also provide a copy of their most recent bank and investment statements, as well as copies of their retirement award letter or most recent 1099-SSA.

3. Mortgage Documents

A HELOC is based on one key fact: that you own your home. To ensure your ownership is secure before refinancing your mortgage into a line of credit, you’ll need your mortgage statement, tax bill, and homeowner’s insurance policy. Also plan to provide your title insurance and the deed to your home. Other details include the purchase date and price of your home.

4. Credit Report

The information contained in your credit report will have a big impact on your ability to qualify for a HELOC and is a strong consideration in the underwriting process. For that reason, it’s one of the most important HELOC documents. Because the requirements for a HELOC are a little stricter than the average mortgage, your lender will hope to see evidence of good financial habits. You need to have the ability to pay down the balance!

5. Home Appraisal

An important part of the HELOC application is understanding how much your home is worth. To determine the amount of money you qualify for in the HELOC, your lender will consider your current mortgage statement, an appraisal of your home’s value, and their internal benchmarks to help make their decision.


Now What?

Once you’ve gathered your HELOC documents and are ready to take control of your equity, we’re happy to connect you with our preferred lender. Our lender’s HELOC terms are objectively the most borrower-friendly.

Head to our Resources page for more information about how a HELOC can help you put your entire income to work – so you can invest, save, and build wealth. Think you’re ready? Take the survey to learn more.