When you take a home equity loan, the equity in your house —the worth of the house, not as the size of your mortgage—becomes the security. If you’ve got a $150,000 house and owe $80,000 on the mortgage, then you could ask for a maximum $70,000 home equity loan or line of charge, although the lender might not provide you much. Lenders will want to be certain the house is worth what you maintain before composing you the check, and they’ll also want to know that you’ve got the income to make monthly payments to the loan.
Present the creditor. Lenders will want to know how much you're currently earning, the Bankrate website states, and they'll want to examine the earnings-to-date statements. In the event that you't reevaluate your annual earnings in hopes of getting a larger loan, comparing your claims to the figures onto the stubs will show the truth.
Show the creditor your W2 forms or tax documents for the last couple of years. Lenders will want to see your current income continues to be consistent for a while, according to Bankrate. This is particularly important when you earn money by commission sales or any other source that isn't as continuous as a regular paycheck.
Give the creditor documentation for income sources, such as lease properties or accounts.
Provide proof of alimony or child support if you're claiming that within your earnings. In accordance with LendingTree.com, you'll need court records showing your partner is legally required to offer the money.