Equity Home Loans - home equity loans?

home equity loans?

I have been approved for a home loan. I found a house that they are asking $249,000 for and I just made an offer of $200,000 hoping I can get a steal because of the way the market is down and continuing to go down. The house is currently worth $398,000 according to the appraisal. I'm pretty sure the bank is going to let it go to me for my offer, so that would mean the minute the doc's are signed, I just got a house with $198,000 in equity in it. I plan to pay off both my cars and some credit cards using a home equity loan or line of credit, so that I only have the house payment to pay. How soon after I buy the house, can I be approved for one of these and what does it take to get qualified,. i.e credit score, equity, etc.

Public Comments

You can usually apply after you have made a few payments, take in mind that it is a declining market and the banks are really considering this. To get qualified for this and have a low rate - good credit, good equity, good income. good luck
Theoretically, you can refinance the day you close on the property. However, the numbers don't work. You state "I'm pretty sure the bank is going to let it go to me for my offer...". Is the bank the owner, or is this predicated on a "short sale"? If true market value is $398,000, why wouldn't you (or someone else) grab the $149,000 in "equity" currently offered? Obviously, the house currently isn't worth $249,000, much less $398,000. The list price is likely a matter of record and the sales price definitely will be. When appraised for your refinance, the appraisal will have to display sales for the property within the past 3 years and listings within the past 1 year. This will have to be reconciled to the market. If the market is truly continuing to decline, and in some cases even flat, a considerable number of lenders now require the appraiser provide at least 2 listing and/or pending sales to support market trends. You may get a great deal, but it doesn't appear you'll get a great deal of equity at closing. Best of luck.