The Home Equity Process

April 29th, 2013

When considering a major purchase — think car, home improvements, or a wedding — taking out a home equity loan or home equity line of credit may well be your best option. However, deciding between a home equity loan and a line of credit can be puzzling.

With this in mind, we’d suggest that prior to applying for either, you gather necessary paperwork (bank statements, W2 forms, tax returns, etc.) and jot down any potential questions you have related to the overall process. Then, visit with any of The First National Bank and Trust of Newtown’s highly trained lenders to get the ball rolling. They’ll explain everything, answer all your questions, and ensure that you have all the information necessary to make an informed decision about what option will most effectively address your needs.

Person holding cash During the initial interview with the lender, the discussion will include the terms, amounts and if an appraisal is required. An independent evaluation of the value of the property will be done by the bank. It’s possible a full appraisal may be necessary and the lender will disclose that during the application process.

This appraisal helps us in calculating the maximum amount of loan or credit line for which you may be eligible. Once this is completed and you’ve been approved for a specific amount — and assuming you decide to move forward with the process — you’ll generally be able to sign all final paperwork in about a week.

Keep an eye out for an upcoming post which further explains the difference between home equity loans and home equity lines of credit. The First National Bank and Trust of Newtown is prepared to be with you every step of the way. Additional information on home equity loans and lines and how we can make the process easier is available by emailing info@fnbn.com or calling 215-860-9100.

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Margaret M. Young

Vice President

Consumer & Commercial Lending

The First National Bank and Trust Co. of Newtown

215-860-9100 – phone x3003