Home Equity Loans Can Help Buyers

A home equity loan is a type of loan that uses the equity of the home as collateral. Buyers who may need to do improvements to a potential home can apply for these types of loans if they do not have the money up front to make the house suitable. A borrower must have excellent credit and an ability to repay this loan, as well as the initial mortgage. The house must also be worth more than the original mortgage loan to qualify for a home equity loan. Some homeowners may also take out this type of loan for pricey home repairs or other major life expenses. Having equity can work in favor of the homeowner and help buyers make their house a home.

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