How to buy a Home Using a 1st Lien HELOC

In this article, we’re going discuss how you can get qualified for a 1st lien HELOC for the purpose of buying a brand new home. You can purchase a home using a HELOC to finance the purchase.

Here are the steps of buying a home using a 1st lien HELOC

• Get Pre-Approved for loan
  • Submit Application for pre-approval
  • Credit Pull
  • Submit Documentation
  • Receive Pre-approval letter with max purchase price
• Home Search
  • Look for & find your perfect home!
• Submit contract to sellers
  • Lender will send an offer letter which will look just like the pre-approval letter with the address & purchase price of property
• Receive Signed Contract
  • Once you receive the signed contract please send to the Lender right away!!
• Lender Sends out Initial Disclosures
  • Please sign these ASAP, the borrower’s signature starts the loan process and our timeline
• Lender orders appraisal, Lender orders title work
  • This all happens in the background
• Lender collects additional documentation for underwriter for initial underwrite
  • Please be sure to submit all requested documentation right away
• Lender underwrites file
• Clear to close
• Close on home