Best Home Equity Line of Credit (HELOC) and Home Equity Loan Lenders in Utah

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Utah’s population is growing rapidly. According to the Kem C. Gardner Policy Institute, the Beehive State’s population grew by over 58,000 between July 1, 2020 and July 1, 2021. 

With such rapid growth, the housing market in Utah has been red hot. In fact, homeowners in Utah gained an average of approximately $92,000 in home equity during the past year, according to data analytics firm CoreLogic

With more home equity due to higher home values, Utah homeowners may be eligible to borrow against that equity with a home equity loan or home equity line of credit (HELOC). Home equity loans and home equity lines of credit can be flexible, relatively low-interest methods of financing for everything from home improvements to college tuition to debt consolidation. However, since these loans are secured by your home, they’re not without risk. If you default on the loan, you could lose your home

Before applying for a home equity loan or line of credit, shop around and compare offers from different lenders to find the lowest interest rates and fees. Here’s what you need to know to find the top home equity loan and HELOC lenders in Utah.

Best National HELOC and Home Equity Loan Lenders in Utah 

Editorial Independence

As with all of our home equity loan and home equity line of credit (HELOC) lender reviews, our analysis is not influenced by any partnerships or advertising relationships. For more information about our scoring methodology, click here.

Good for wide nationwide availability
U.S. Bank
U.S. Bank
Good for wide nationwide availability
U.S. Bank
  • Products offered:
    Home equity loan, HELOC, rate-lock HELOC
  • Home equity loan terms:
    Up to 30 years
  • HELOC terms:
    10-year draw period, unspecified repayment period
  • Maximum LTV allowed:
    80%

NextAdvisor’s Take

Pros
  • Rate discount for setting up autopay from a U.S. Bank checking or savings account (home equity loans only)
  • Extensive availability nationwide (47 states for both home equity loans and HELOCs)
  • Can apply online, over the phone, or in person at a branch
  • Good price transparency
  • Many customer support options
Cons
  • There may be an annual fee for HELOCs if you don’t have a U.S. Bank Platinum Checking Package
  • Not available in TX, DE, SC
  • Potential early closure fee if you close your HELOC within 30 months of opening
The Bottom Line

Based in Minneapolis, Minnesota, U.S. Bank is the fifth largest banking institution in the U.S. It offers both home equity loans and HELOCs in 47 states, with the option of interest-only HELOCs  available to qualified borrowers. You also have the option to lock all or part of your outstanding HELOC balance into a fix-rate option during your draw period. Available loan amounts for HELOCs and home equity loans range from $15,000 to $750,000, and up to $1 million for properties in California.

There are no closing costs on home equity loans or HELOCs from U.S. Bank, but you’ll be charged an early closure fee of 1% of the line amount ($500 max) if you close your HELOC within 30 months of opening. In addition, HELOC borrowers may be charged an annual fee of up to $90, which can be waived with a U.S. Bank Platinum Checking Package. U.S. Bank offers a rate discount of 0.5% for home equity loan borrowers who set up automatic payments from a U.S. Bank personal checking or savings account.

You can apply for a home equity loan or HELOC through an online application, by phone, or by visiting a U.S. Bank branch in person. If you want a loan estimate for a home equity loan — which includes the estimated interest rate, monthly payment, and total closing costs — without completing a full application, you can get one by speaking with a banker over the phone. 

We like U.S. Bank because of its extensive nationwide availability, many customer support options, and excellent price transparency — meaning you can get a personalized rate quote and fee information just by filling out some basic information, no credit check required. 

Good for wide range of customer service options
Connexus Credit Union
Connexus Credit Union
Good for wide range of customer service options
Connexus Credit Union
  • Products offered:
    Home equity loan, HELOC, interest-only HELOC
  • Home equity loan terms:
    5 to 15 years
  • HELOC terms:
    15-year draw period, 15-year repayment period
  • Maximum LTV:
    90% for home equity loans

NextAdvisor’s Take

Pros
  • No annual fee
  • Available in 46 states
  • Excellent customer service options
  • Membership requirements are relatively easy to meet
Cons
  • Credit check required to get a personalized rate quote and product terms
  • Not available in Alaska, Hawaii, Maryland, and Texas
  • Potential for high closing costs
  • Must be a member of the credit union to get a loan
The Bottom Line

With over 420,000 members in all 50 states, Connexus Credit Union has a far reach in the United States. The credit union offers home equity loans and HELOCs in 46 states (excluding Alaska, Hawaii, Maryland, and Texas). Loan amounts for home equity loans and HELOCs range from $5,000 to $200,000. Within its HELOC product offerings is an interest-only HELOC which may allow you to pay a lower monthly payment. Since Connexus is a credit union, its products are only available to members. But, membership eligibility is open to most people: you (or a family member) just need to be a member of one of Connexus’s partner groups, reside in one of the communities or counties on Connexus’s list, or become a member of the Connexus Association with a $5 donation to Connexus’s partner nonprofit. 

Connexus does not specify any rate discounts, but it does offer an introductory rate for the first six months of your loan term. You won’t have to pay an annual fee for a home equity loan or HELOC with Connexus, but closing costs can range from $175 to $2,000 depending on your loan terms and property location. 

To apply for a home equity loan or HELOC with Connexus, you can fill out a 3-step application online. Though the application process is quick, you won’t be able to see a personalized rate or product terms without a credit check.

Connexus offers expansive nationwide availability and has several product offerings, part of the reason this lender ranked highly for us. Its straightforward application process is another bonus that makes applying for a home equity loan or HELOC easy.

Good for wide range of product offerings
KeyBank
KeyBank
Good for wide range of product offerings
KeyBank
  • Products offered:
    Home equity loan, HELOC, interest-only HELOC, rate-lock HELOC
  • Home equity loan terms:
    5 to 30 years
  • HELOC terms:
    15-year draw period, 15-year repayment period
  • Maximum LTV:
    80% for standard home equity loans and HELOCs, 90% for high-value home equity loans and HELOCs

NextAdvisor’s Take

Pros
  • Interest-only and rate-lock HELOC options
  • Streamlined application process for existing KeyBank customers
  • Smooth online user experience and website
Cons
  • High closing costs if you plan to use a closing agent
  • Annual fee for HELOCs
  • Origination fee for home equity loans
The Bottom Line

Based in Cleveland, Ohio, KeyBank has been around for nearly 190 years. KeyBank offers home equity loans to customers in 15 states and HELOCs to customers in 44 states. Aside from a standard HELOC, KeyBank also offers interest-only and rate-lock options. Home equity loan amounts of $25,000 and up are available, while HELOCs have line amounts of $10,000 and up. 

KeyBank HELOCs come with an annual fee of $50, but no closing costs unless your closing is performed by a closing agent. In that case, your closing fee could be up to $400. KeyBank offers a 0.25% rate discount for clients who have eligible checking and savings accounts with KeyBank. Additionally, home equity loans have an origination fee of $295.

The KeyBank application allows you to apply for multiple products at one time. If you’re not sure whether KeyBank loans are available in your area, the application will tell you once you input your zip code. If you’re an existing KeyBank customer, you’ll have the option to skim through the application and import your personal information from your account. 

We like KeyBank because of its extensive product offerings. The streamlined application process for existing customers is helpful, but both existing and new customers will likely be pleased with the online user experience and availability of customer service that KeyBank offers.

Good for HELOCs with longer repayment periods
PNC Bank
PNC Bank
Good for HELOCs with longer repayment periods
PNC Bank
  • Products offered:
    HELOC, rate-lock HELOC
  • Home equity loan terms:
    N/A
  • HELOC terms:
    10-year draw period, 30-year repayment period
  • Maximum LTV:
    89.90%

NextAdvisor’s Take

Pros
  • Variable and fixed-rate HELOC options
  • 30-year repayment period on HELOC
  • Option to choose a custom loan term
  • User-friendly website
Cons
  • Don’t offer home equity loans
  • $50 annual fee on HELOCs
The Bottom Line

PNC Bank is the sixth-largest bank in the U.S. by consolidated assets, according to the Federal Reserve. Headquartered in Pittsburgh, PA, PNC serves 44 states. Though the bank does not offer home equity loans, it offers both variable-rate HELOCs and fixed-rate HELOCs. You can even switch between variable and fixed-rate interest over the course of your draw period. Another benefit of a PNC HELOC is that the repayment period is 30 years, unlike most other lenders who have 20 year terms. A longer payment period generally means lower monthly payments (but more interest paid in the long run), which can be beneficial to those who want to borrow large amounts. Line amounts from $10,000 to $1,000,000 are available on a PNC HELOC.

PNC offers a 0.25% interest rate discount to borrowers who set up and maintain automatic payments from a qualifying PNC checking account. There is a $50 annual fee for HELOC borrowers, except in Texas. 

The PNC website is user-friendly, giving customers the ability to estimate their home equity with an easy-to-use calculator. It also provides several useful graphics and videos to help borrowers better understand how their HELOCs work. PNC allows potential borrowers to see their rate and term options early on in the application process, indicating good price transparency. PNC also gives customers the option to choose a custom loan term. 

We like PNC Bank because its application is straightforward and the bank is very transparent about its rates, fees, and terms without requiring a credit check. Though PNC doesn’t don’t offer home equity loans at all, its wide nationwide availability for HELOCs is noteworthy.

Honorable mentions

Good for high loan-to-value ratio options
BMO Harris Bank
BMO Harris Bank
Good for high loan-to-value ratio options
BMO Harris Bank
  • Products offered:
    Home equity loan, HELOC, interest-only HELOC, rate-lock HELOC
  • Home equity loan terms:
    5 to 20 years
  • HELOC terms:
    10-year draw period, 20-year repayment period
  • Maximum LTV:
    85% for HELOCs; 89.99% for most home equity loans

NextAdvisor’s Take

Pros
  • Available in 48 states
  • No hard credit check required
  • Flexible product offerings
  • Option for 100% CLTV for borrowers who meet certain qualifications
Cons
  • Limited customer service options
  • Can only receive personalized rates on the phone
  • $75 annual fee for HELOCs
The Bottom Line

As the 8th largest bank by assets in North America, BMO Harris Bank (a subsidiary of the Canadian financial services company Bank of Montreal) serves more than 12 million customers globally.  Currently, BMO Harris products and services are available in 48 states (all but New York and Texas). BMO Harris offers home equity loans and three variations of a HELOC. Loan amounts for home equity loans start at $5,000 and up while HELOC lines start at $10,000 and up. 

The normal maximum combined loan-to-value ratio allowed is 85% for HELOCs and 89.99% for home equity loans, but a 100% max CLTV option is available for low-to-moderate income borrowers or Low to Moderate Income Census Tract customers who need to make home improvements.

There is no application fee for a home equity loan or line of credit with BMO Harris. In addition, BMO Harris will pay closing costs for loans secured by an owner-occupied 1 to 4-family residence, but borrowers will have to pay a $75 annual fee for a HELOC. If you authorize auto pay from a BMO Harris checking account, you’ll be eligible to receive a 0.50% rate discount.

You can apply for a home equity loan or HELOC online or in-person, but in order to get personalized rates, you’ll have to speak with a representative on the phone. Getting personalized rates does not require a hard credit check. 

We like that BMO Harris offers both home equity loans and three types of HELOCs almost nationwide, but the lender fell short because of its low price transparency. Additionally, the online application requires your social security number and has some elements that could be confusing for customers. 

Good for 24-hour customer support
Flagstar Bank
Flagstar Bank
Good for 24-hour customer support
Flagstar Bank
  • Products offered:
    Home equity loan (in some areas), HELOC, interest-only HELOC
  • Home equity loan terms:
    10, 15, or 20 years
  • HELOC terms:
    10-year draw period, 20-year repayment period
  • Maximum LTV:
    80%

NextAdvisor’s Take

Pros
  • Available in 49 states
  • Accessible customer service, including 24-hour phone support
  • Flexible product offerings
Cons
  • No online application (can only request a phone call)
  • Unable to get personalized rate quote through website
The Bottom Line

Flagstar Bank has the highest nationwide availability yet, offering home equity loans and HELOCs in 49 states (all but Texas). Though both products are offered in 49 states, the availability of home equity loans may be limited depending on your area. Available loan amounts for home equity loans and HELOCs are $10,000 to $1,000,000.

HELOCs with Flagstar require a $75 annual fee, but it is waived the first year. To avoid closing fees, you’ll have to keep your HELOC open for at least 36 months. Additionally, there is a 0.50% rate discount for borrowers who have monthly automatic payments set up from a Flagstar Bank deposit account.

Flagstar doesn’t have a full online application, only a form where you can submit your information to be contacted by a representative later.  Flagstar does not provide rates on its website, you can get a custom rate based on a soft credit check and some additional information. 

While its nationwide availability for HELOCs is strong, Flagstar’s tedious application process and lack of transparency may be frustrating for customers seeking a quick, easy process. The lender does offer several customer service options, including 24-hour loan support via phone, so this may be appealing to those who enjoy accessible communication with customer service. 

Good for no fees or closing costs
Discover
Discover
Good for no fees or closing costs
Discover
  • Products offered:
    Home equity loan
  • Home equity loan terms:
    10, 15, 20 or 30 years
  • HELOC terms:
    N/A
  • Maximum LTV:
    Not specified

NextAdvisor’s Take

Pros
  • No origination fees or closing costs
  • Home equity loans are available in 48 states
Cons
  • Limited customer service options available
  • Home equity loans not available in Iowa and Maryland
  • Does not offer HELOCs
The Bottom Line

A financial services company known primarily for its credit cards, Discover also offers home equity loans as part of its suite of banking products. Home equity loans are available in 48 states, but the lender does not offer home equity lines of credit (HELOCs) at all. For Discover’s home equity loans, possible loan amounts range from $35,000 to $300,000. The lender charges no origination fees, application fees, appraisal fees, and mortgage taxes. 

You can apply for a home equity loan from Discover online or over the phone. The application process takes approximately six to eight weeks in total, according to Discover’s website. 

Discover offers wide nationwide availability for its home equity loans and good price transparency, but its lack of HELOC offerings may be a limiting factor for consumers looking for additional product options. In addition, Discover offers limited customer service options — your only option to get help is by phone, with no in-person service or online options like email or live chat. 

Good for borrowers outside the continental U.S.
PenFed Credit Union
PenFed Credit Union
Good for borrowers outside the continental U.S.
PenFed Credit Union
  • Products offered:
    HELOC, interest-only HELOC, rate-lock HELOC
  • Home equity loan terms:
    N/A
  • HELOC terms:
    10-year draw period, 20-year repayment period
  • Maximum LTV:
    90%

NextAdvisor’s Take

Pros
  • Offered in all 50 states as well as Guam, Puerto Rico, and Okinawa
  • Flexible HELOC product offerings
  • Credit union membership easy to obtain
Cons
  • No online application
  • Poor price transparency
  • Does not offer home equity loans
The Bottom Line

Established in 1935, Pentagon Federal Credit Union (widely known as PenFed) offers HELOCs in all 50 states as well as Guam, Puerto Rico, and Okinawa. PenFed is a credit union so its products are only available to members, but you can easily become a member by opening a PenFed savings account and funding it with at least $5. With PenFed, you’ll have the flexibility to choose between a standard, interest only, or rate lock HELOC with line amounts ranging from $25,000 to $1,000,000. But, the lender does not offer home equity loans at all.  

HELOCs with PenFed will have an annual fee of $99 unless you have paid $99 in interest during the preceding year. PenFed will pay most closing costs, but for credit lines greater than $500,000, the borrower will likely be responsible for closing costs. No rate discounts are specified. 

If you’re interested in applying for a HELOC with PenFed, you’ll have to request a callback over the phone or online. This feature may be a major drawback for customers who prefer online services and applications.

While PenFed may be a good option for borrowers in U.S. territories who don’t have many other alternatives when it comes to home equity lenders, the lender’s lack of an online application and lack of price transparency earned it a low score in our ratings. If you prefer communication via telephone, however, PenFed may be a good option for you.

How We Chose These Lenders

NextAdvisor developed a framework to evaluate home equity lenders using a weighted average score between 1 and 5 based on the following criteria. A higher weight was given to the criteria we determined to be most important:

  1. Nationwide availability: We rated lenders on a scale of 1 to 5 based on how many states their home equity products were offered in. For lenders that only offered either home equity loans or HELOCs, we looked at how many states offered that specific product. For lenders that offered both home equity loans and HELOCs, we looked at how many states each individual product was offered in, and then took the average. A lender scored a 5 if it offered home equity products in at least 45 states which equates to 90% of U.S. states. Nationwide availability counted for 10% of the composite score.
  2. Online user experience: We rated lenders on a scale of 1 to 5 based on the user experience of their online application process. A 5 was given to lenders who had a clear, easy-to-navigate online application process with no technical issues or confusing instructions. A score of 1 was given to lenders who did not offer an online application at all, instead requiring customers to apply in person at a branch or over the phone. Online user experience counted for 20% of the composite score.
  3. Products offered: We rated lenders on a scale of 1 to 5 based on how many types of home equity products they offered. Product offerings were categorized into the following types: home equity loans; standard variable-rate, interest-and-principal HELOCs, interest-only HELOCs, HELOCs with fixed-rate or rate-lock options, and miscellaneous products that did not fall into any of the previous categories. Lenders who offered at least 4 types of products received a 5. Products offered counted for 20% of the composite score.
  4. Price transparency: We rated lenders on a scale of 1 to 5 based on their price transparency, which we defined as how much information you could get about rates and fees without a hard credit check. Comparing rates and fees from multiple lenders is one of the best ways to ensure you’re getting the best deal, and we gave high scores to lenders who made it easy to do so. On the other hand, lenders who kept detailed rate and fee information behind a hard credit check — which can slightly lower your credit score and should only be done when you’re serious about moving forward with a particular lender — scored lower. Lenders who provided personalized quotes for rates, fees, and important loan information with only basic information (and no hard credit check) required received a 5. Price transparency counted for 30% of the composite score.
  5. Customer service options: We rated lenders on a scale of 1 to 5 based on how many different customer service options were available to consumers needing help with their loan application or loan servicing. Examples of customer service options we counted included, but were not limited to, online live chat, phone, email, visiting an in-person branch, in-person or virtual appointments with dedicated loan officers, and social media direct messaging. Lenders who had five or more customer service options received a 5. For each option that was available only to existing customers (and thus would not be available to new customers needing help with the application process), we deducted 0.5 from the score. For any lender that had a 24/7 customer service option, regardless of what form that option took, we added 1 to the score. We did not evaluate the quality of the customer service itself, as that can be subjective and highly dependent on the specific customer service representative a borrower is working with. Customer service options counted for 20% of the composite score. 

What We Did Not Evaluate In Our Scoring

When comparing lenders, we did not evaluate factors like pricing (interest rates and fees) and borrower requirements (like minimum credit scores). Home equity rates and fees can change often and are based on each borrower’s specific credit profile. Each lender also has its own unique underwriting requirements and process, which are often not publicly available. Therefore, we don’t believe it’s possible to accurately evaluate rates, fees, and credit score requirements from lender to lender. It’s important to note that lower rates may not actually lower the total cost of borrowing if they’re offset by higher fees.  

If a company offered both home equity loans and HELOCs, we evaluated its home equity lending as a whole rather than any specific product. 

To find the best deal, get personalized rate and fee quotes from multiple lenders, then use NextAdvisor’s loan calculator to calculate the total cost of borrowing and monthly payment to accurately compare lenders. 

Best Utah HELOC and Home Equity Loan Lenders

Zions Bank

Founded in Salt Lake City, Utah, in 1873, Zions Bank now has a network of 122 full-service financial centers providing banking and loan services across Utah, Idaho, and Wyoming. 

Zions Bank offers both home equity loans and HELOCs. Home equity loans come with two term options: 5 years and 10 years. In terms of HELOCs, there is an interest-only option, where required payments are interest-only during the draw period, as well as a standard principal-and-interest option. Both options come with a draw period of 10 years and a repayment period of 20 years. The maximum LTV on a home equity loan or HELOC is 80%. Zions Bank also offers a LockSelect Structured Repayment Option on HELOCs, where you can lock in some or all of your HELOC balance at a fixed interest rate for a fee. There are no origination fees or closing costs on home equity loans. HELOCs have no annual fees or origination fees, but may come with closing fees, certain account activity fees, and early termination fees if you close the HELOC in the first three years.

You can apply online for a home equity loan or HELOC, or contact a local branch or a customer service call line for additional help. 

Utah First Credit Union

Utah First Credit Union was founded in the aftermath of the Great Depression and has grown from its initial 23 shares to thousands of members and nine branches across Utah. Because it’s a credit union, its financial services are limited to members. Membership is available in three ways: working for a participating employer, belonging to a current member’s immediate family, or joining the non-profit organization Community Volunteers of Utah through a $5/year donation.

Utah First Credit Union offers both home equity loans and HELOCs. HELOCs come in 15-, 20-, 25-, and 30-year terms, while home equity loans have terms ranging from five to 10 years. Utah First Credit Union allows for HELOCs with line amounts up to 125% of your home’s equity and home equity loans with loan amounts up to 100% of your home’s equity, options that are seldom seen among most home equity loan and HELOC lenders. It’s important to note, however, that borrowing a larger percentage of your home’s equity (thus having a higher loan-to-value ratio) will most likely result in a higher interest rate. There are no annual fees or origination fees on home equity loans and HELOCs, and there are interest-only options available for HELOCs.

You can apply for a home equity loan or HELOC through an application on Utah First Credit Union’s website. 

How to Find the Best HELOC or Home Equity Loan Rate in Utah

Home equity loan and HELOC rates and terms can vary significantly between borrowers in Utah. Your rates are based on several factors, including your credit score, debt-to-income ratio (DTI), loan-to-value ratio (LTV), and your desired loan amount. Whether a loan is in a first lien or second lien position and whether the house securing the loan is a primary residence or investment property can also affect the rate. 

To improve your odds of qualifying for a low rate or to save money on your loan as a whole, use these tips:

Review your credit

Most Utahns have relatively good credit. The average FICO credit score in Utah is 727, according to the credit bureau Experian. If your score is lower than that — or you simply want a higher score to get the best possible rate — focus on paying down existing debt and making all of your monthly payments on time to boost your score. Having monthly payments automatically deducted from your bank account for all your bills is a good way to avoid accidentally missing a payment. 

You can also review your credit reports at AnnualCreditReport.com to ensure there isn’t incorrect or fraudulent information on your credit report that could affect your credit score. 

Determine how much to borrow

Typically, lenders allow you to borrow up to 80% of your home’s appraised value, minus your current mortgage balance. But that doesn’t mean you should borrow the maximum; a larger loan or line of credit usually means you’ll pay more in interest, and a larger amount of debt increases the risk of you being unable to repay it. Figure out how much you need — and think about ways to reduce the cost  — to minimize unnecessary debt. 

Choose the right loan product for your needs

Though home equity lines of credit and home equity loans both let you borrow against your home’s equity for cash, the differences in how they work make them better options for different situations. 

Home equity loans are installment loans with fixed interest rates, paid in a lump sum when you take out the loan. This makes them a good option for situations where you know upfront exactly how much money you need to borrow and you want the stability of a fixed interest rate and fixed monthly payment.

By contrast, a home equity line of credit is a revolving line of credit with a variable interest rate based on the prime rate. You can borrow as much as you want, whenever you want (up to the credit limit) during the draw period, and repay what you borrowed — plus interest — during the repayment period. The benefit is that you only need to pay interest on what you draw, not the entire line amount, which is helpful if you don’t know exactly how much money you’ll need or if you have ongoing expenses. The downside is that the interest rate is variable, meaning your interest rate and monthly payment could increase unexpectedly if the prime rate goes up. 

Check rates and fees from multiple lenders

Each lender has its own requirements for borrowers and formulas for determining rates, so you may find that you’re eligible for a much lower rate from one lender over another. As you look for a HELOC or home equity loan in Utah, it pays to shop around and compare quotes from local and national lenders. 

In addition to looking at the interest rate, be sure to also consider any fees a lender may charge. With home equity loans, there may be closing costs or origination fees to take out a loan. HELOCs are less likely to charge closing costs but may have other costs like inactivity fees, prepayment penalties or annual fees. When comparing loans, look at the annual percentage rate (APR), which factors in the cost of fees and represents the full cost of borrowing.

To compare loan offers and see what you’d repay with different rates, use NextAdvisor’s loan calculator. 

How to Get a HELOC or Home Equity Loan in Utah

Follow these six steps to get a HELOC or home equity loan in Utah: 

  1. Wait Until You Have At Least 20% Equity In Your Home: Although average Utah home values have skyrocketed recently, you may not benefit from that increase if you recently bought your home. Lenders generally require you to have at least 20% equity in your home before they will consider you for a home equity loan or HELOC. You can calculate how much equity you have in your home by subtracting the outstanding balance on your mortgage from your home’s appraised value. 
  2. Gather the Necessary Documents: Remember how much paperwork you needed when you applied for the mortgage to buy your home? Applying for a home equity loan or HELOC is very similar. You’ll need to provide the lender with documents related to your income, existing home loan, and current homeowners insurance policy. Some lenders may also require flood insurance if you live in an area at risk of flooding. 
  3. Request Quotes: Because rates and terms can vary so much between lenders, it’s wise to request quotes from a few different lenders. Some allow you to view potential options with only a soft credit check, which doesn’t impact your credit score, while others require a hard credit inquiry
  4. Submit an Application for a Loan or HELOC: After finding the right home equity loan or HELOC lender for you, you’ll need to complete the loan application, attach supporting documents, and consent to a hard credit pull so the lender can check your credit history and credit score officially. Most lenders will let you apply online, but some may require you to visit a branch or call a loan officer. 
  5. Set a Date for a Property Evaluation: After receiving your application, the lender will arrange for a property inspection. In Utah, appraisers are regulated by the State Division of Real Estate. Within the state, appraisals can be automated, or the lender may insist on a more rigorous, in-person assessment. 
  6. Work With the Lender to Pick a Closing Date: Once the home appraisal has been completed, the lender will make a final decision on your loan or HELOC. Then, they’ll work with you to establish a closing date. Closing on a home equity loan or HELOC is similar to closing on a mortgage; you’ll sign paperwork and pay closing costs or fees to the lender before the loan funds are disbursed.