|By Kari Johnson on March 2, 2011
Sometimes, you get in a pinch and need to receive money quickly. When this happens, many people turn to loans, specifically, fast home equity loans.
Home equity loans are a type of secured loan that functions by using your home as collateral. These loans are somewhat easier to procure because they look at your home’s current market value (subtracting what you still owe on it) instead of just your credit score to determine whether or not they should give you the loan. This is also what they will base the amount of your loan on.
Herein lies the risk: if, for some reason, you are unable to pay the loan back, it could result in the loss of your home.
However, if you have already decided that this is the loan you want, and you want it quickly, there are a few options. You can start with a lender you already know, as lenders sometimes have a streamlined process for existing clients. You could also look into credit unions as opposed to just banks.
And, of course, processes you find online are going to be the quickest to get through. You would fill out an application, and someone will contact you, usually within twenty-four hours, with your options.
Some home equity loans will require an appraisal, which takes a little more time and can cost about four hundred dollars (that can usually be lumped into the loan amount for you to worry about later, if that is how you choose to deal with it). Considering the nature of this loan, you may not be able to avoid the appraisal. If you can, it will make your loan process faster. If not, you can ask the loan consultant how quickly the appraiser can come to your house.
Besides filling out the form, you may need paystubs and savings and checking account statements, especially to determine a payment plan.
If you’re concerned about speed, be sure you don’t sacrifice quality for quickness. You can still shop around for the best rates online, and once you have settled on a credit union or bank you are unfamiliar with, you should still check their credentials and validity. The best way to determine who could give you a good home equity loan is to speak with people you know who have already been through the process. They can tell you if their loan worked for them, how quickly they received their funds, and even how the service was. Even if you’re searching online for a loan, the best referral is going to be a personal one.