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HELOC - Why You Need This Before You Sell Your Home

Focus Real Estate
Jan 11 4 minutes read



A HELOC - home equity line of credit - can provide you with crucial cash to help you put your home on the market and buy your next home.

 Erik: 

HELOC, SHELOC, THEYLOC. What the hell is a HELOC? Stay tuned. 

Randal: 

Welcome back to STAY focused, FOCUS Real Estate's weekly video series. Here, we're going to talk today about preparing for your next move. And one thing that we find is the most common obstacle for sellers and buyers, they are doing them both, is money for purchase and sale agreements, making deposits and their closing costs, right? 

Erik: 

Or even homeowners, maybe fixing up some things that they need to do to get the house ready. 

Randal: 

Most of you that we're speaking to that are our homeowners out there, have the equity in your home. And I know that many of you want to make moves because I'm hearing from you. But we're here to tell you HELOC, right? 

Home Equity Line Of Credit. A home equity line of credit is something that most banking institutions will give you for free. 

Right? They're not gonna charge you an appraisal fee. 

They're not going to charge you closing costs. They're just going to give you a home equity line of credit that works very much like a credit card. 

You only pay interest on what you use and you don't pay anything if you don't use it. So it doesn't really hurt for you to reach out and grab one of those. 

You never use it, you never use it, right? 

But if you need it, you know what the bank considers it? Cash. So you can make those deposits on your next home. 

Whether that be the 20% down that you want. Whether that just be a 5% purchase and sale deposit. 

Whether it just be the 10 grand you want to stick into your home to do some painting and staging, and cleaning windows, and maybe cleaning up the front door and front porch the way you want, to make a splash of an impression. 

That's a great way to do it, if you don't have the reserves to take care of that. You know, we really love sending business to Nathan and his team at mainstreethomemortgage. 

They can't write those unfortunately. So go and talk to your, 

Erik: 

your local bank or credit union are great places to go and talk about a line of equity, line of credit on your home. 

But the reason why we're telling you this is you need to think ahead, think a step or two ahead. And if that's something, 

Randal:

Why the heck would they think ahead? 

Erik: 

Because if that's something you need, you want to tap into that equity, you need that cash. You need to do that before you list your house. 

Before you put it on the market. 

Randal: 

Because ain't no bank gonna give you a loan when your house is already on the market is what he's trying to say. 

Erik: 

Exactly. 

Randal:

So get to that quickly. Once you have closed on it, you need to wait three days before you can hit the post button. So don't wait until the last minute. Do it now. 

Erik: 

Tap into that equity. Be ready. If you need it, it's there. If you don't, it doesn't cost you anything and you will be ready to help make that next purchase with that cash available to you. 

Randal: 

With your gender neutral THEYLOC. Thanks for watching. If you have questions about this, don't feel bad to reach out to us or your local bank or somebody to help you walk through that process. And until next time, 

Randal: 

stay tuned and stay focused. 

Erik: 

stay tuned and stay focused 

Randal: 

We all watch.


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