New Online Tool Simplifies Home Equity Lines of Credit, Reduces Approval Time to Five Minutes
Livonia, Mich. – July 01, 2003 – In response to consumers’ growing interest in tapping the equity in their homes, Quicken Loans now offers EquityOnline!, a tool on Quickenloans.com that enables homeowners to get approved for a home equity line of credit within five minutes and receive their funds within 10 days.
Through EquityOnline!, prospective home-equity borrowers complete a brief application, that includes basic information such as property address and their social security number. The automated process gathers the borrower’s home property valuation and credit report information from online sources.
The homeowner receives approval notification within seconds, and then moves on to the next step in the online process where they choose how much equity to borrow and schedule a convenient time to sign the closing papers. Within days, the notary hand-delivers the closing papers to their home to be signed.
“More than 70 percent of Americans now view their homes as their most reliable asset – and they’re seeking hassle-free, reliable ways to tap their home’s equity to better manage their finances,” said Bob Walters, chief economist, Quicken Loans. “Technology advances have made gaining access to mortgages and home equity lines of credit much simpler and faster. By eliminating the need for paperwork and putting the process online, the once time-consuming tasks of applications, home appraisals and credit reports can now be completed without human intervention.”
EquityOnline! requires no deposits or closing costs in most states. And because the application process includes a credit check, no proof of income is required.
Other features include:
- Home value calculators that help borrowers determine the current market value of their home and how much equity they can borrow.
- Worksheets for calculating gross monthly income.
- No paperwork to submit. Because it is credit score-driven, there is no need for W-2 forms, bank statements, pay stubs, etc.
- Secure web site for transacting online.
- Online, real-time assistance to answer questions at any point in the application process.
- Immediate access to a mortgage professional by phone, chat or email if desired.
- Instant approval on lines of credit up to $100,000.
A recently survey by market research firm ORC found that 45 percent of Americans do not know how to determine the equity in their homes. That same survey found that a third of homeowners would apply for a home equity line of credit if they could complete the process online.
A home equity line of credit, when used properly, can be a smart financial tool. Homeowners receive a line of credit based on the amount of equity they have in their home. They differ from home equity loans because they receive no lump sum. Instead, they can draw on the home equity line as needed – like a checking account. Interest is charged only when money is withdrawn, and in many cases the interest is tax deductible, making it a smart alternative to credit card debt.
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