Our client is planning to purchase their first home and has submitted an application looking for the best home equity loan rates that are available. They live  in Cleveland Ohio and currently rent a condo. They both have steady jobs which makes them excellent candidates for a home equity loan. From an income perspective , they have sufficient income to carry the principal and interest  and taxes for the home they plan to buy.

We applaud them for taking it slow and not over committing themselves or becoming house bound due to the payments. They have also planned for the move and for the additional expenses that they know they will have with a home of their own.

There credit rating is also very good. They have made sure that all bills have been paid on time. They never have missed a payment. They might qualify for a lower interest rate if their down payment was larger, however they may be eligible for a high ratio mortgage. Many banks are looking for consumers to have as a minimum of 10% of the value of the home to put down as a down payment. For this couple and this home they are looking at it would mean that they should come up with at least $14,ooo as a down payment. Some how they will need to find another $4000 to be able to qualify for a 90% home equity loan.

They have also asked for approval of a home equity loan amount of more than they probably will need. The amount requested is based on their down payment and the current advertised price of the home. They hope to be able to negotiate a deal at a lower price, which will allow them to decrease the loan amount and also their monthly payments. This is a good strategy to take, since it avoids them having to be re-approved at a higher amount if they are unsuccessful in their negotiations.

Home/Mortgage Loan Amount :: $130,000

Home Loan Application and Processing Speed (when do you need the funds):: Immediately, so we can finalize our offer on the home we would like to purchase

Do you currently have a mortgage? :: No, first time home buyers

Bank Name and Branch :: Bank of America, Richmond Time Square

What City/Town, State and County do you live in? :: Cleveland, Ohio

Zip :: 44135

What is your employment field? :: City of Cleveland

Employment Position :: Tax Assessment / Collector for the city

When are you paid? (monthly/weekly/biweekly):: Bi weekly

Your credit rating to be – excellent, fair, or bad? :: Good, we think, have never checked

How did you find us? :: surfing on the net

How are you paid? (direct deposit/paper check):: Direct deposit

Gross Amount Per Paycheck :: $1923

Do you agree to have this information published online, without your PRIVATE information of course? :: I guess, however I really would not want my friends and neighbors to find out

Extra information here please (some detail)::  We are going to be  first time home buyers and really excited about owning a home. We have our eye on a particular home, however we have not made an offer yet. We wanted to make sure that we could get approval for a home equity loan first and then make a firm offer. Our real estate agent that we are working with, suggested that we do this to avoid disappointment if we did not get approved at all or not high enough for this home. I think she also does not want to waste her time in case we cannot get approval for a mortgage.

The home we are looking at is listed for $139,000 and we think that we could probably get it for around $135,000 or perhaps even lower. We have $10,000 as a down payment, however we have applied for home equity loan of $130,000 in case we end up paying full price. We also have money set aside to cover the cost of the inspection and the legal fee’s.

Note to Lender :: Both my wife and I work for the city of Cleveland and have worked there for the past 4 years.  We believe our jobs are pretty secure unlike many people in our area. We currently rent a condo and have come to realize that we can probably carry a mortgage with the taxes at a lower monthly cost than we are currently paying for the rent. This is the primary driver for us to move, since we really like the place we are in. Still we are excited about having our own place as well without neighbors being so close.

I think that our credit rating is good. We have no loans to speak of and we pay our credit cards on time every month. We have never been in arrears on our rent or the utilities that we are responsible for paying.  We know that there will be additional expenses associated with owning a home, however we have set aside some money for these things that we will need. We are going to take it slow so that we do not go further into debt and have more monthly payments to make.

Category: Home Mortgage Loan	APR 3.792%	APR 4.519%	APR 4.673%
Loan Principal	$130,000	$139,000	$130,000
Payment Schedule	Monthly	Monthly	Monthly
Length of Term	15	30	30
Amount to be paid	$167,174.86	$218,361.93	$221,373.15
Total interest paid	$37,174.86	$88,361.93	$91,373.15
Paid per installment	$916.03	$598.25	$606.50

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