How a HELOC works, from first questions to closing
You answer a few questions online, get a pre-approval decision by text and email, and if you go ahead you finish the application and close with the lender online. Click Mortgage arranges the line; a licensed lender funds it. The first credit check is a soft inquiry.
Key facts
| Your first mortgage | Stays as it is; the line is a second loan behind it source |
|---|---|
| First credit check | A soft inquiry; it does not affect your score |
| Rate on a draw | Fixed for the full term of that draw |
| Who funds the line | A licensed lender; Click Mortgage arranges it |
A home equity line of credit, or HELOC, lets you borrow against the equity in your home. You keep your first mortgage. The line is a second loan on top of it.
The steps
- Answer a few questions. You tell us about your home, what the money is for, and how to reach you. A soft credit check does not affect your score.
- Get your pre-approval decision. It comes by text and email, with a link to continue. If anything more is needed, we text or email you; no one calls.
- Apply and close with the lender. If you go ahead, you finish the application with the lender online. A hard credit inquiry may follow at that point.
Who does what
Click Mortgage arranges the line. We are not the lender. The line is funded by a licensed lender.
How the line works
With a HELOC you borrow what you need, when you need it, up to a limit. When you take a draw, the rate on that draw is fixed for the full term of that draw. You get the terms in writing before you sign.
What lenders review
- How much equity your home has.
- Your income and your monthly debts.
- How the home is used, and who owns it.
- Your credit history, at the application stage.
What it costs
Fees depend on the lender and your state. You get the full list of fees in writing before you apply.
Questions people ask
Does answering the questions affect my credit score?
No. The first check is a soft inquiry. A hard inquiry may come later, at the application stage with the lender.
Will anyone call me after I answer?
No. Your pre-approval decision comes by text and email, with a link to continue. If anything more is needed, we text or email you.
Can I pay the line off early?
Usually, yes. The terms you get in writing say whether the lender charges anything for closing the line early.
See what a line on your home could be.
A few questions, a soft credit check only, and your pre-approval decision by text and email.
Check what you can borrow