Applying for a mobile home equity loan is similar to the process you would follow to apply for a traditional home equity loan. You may start out by checking your credit and having any incorrect information removed from your report. Then, you may compare mobile home equity loan lenders based on the interest rates and loan terms they are offering. Once you settle on a lender through which you’d like to apply for a loan, you will typically have to apply either online, in person, or through the mail. You will usually have to provide supporting financial documents, such as bank statements, copies of past tax returns, and payroll stubs as part of the home equity loan application process as well as documentation that proves you are the mobile home owner.
A mobile home equity loan allows you to take advantage of the equity you have in your mobile home property. Essentially, these loans are based on the amount of ownership you have in the mobile home and the land on which it rests in relation to the total amount of money it is worth. If, for example, your mobile home and its land are worth $18,000 US dollars (USD) and you still owe $9,000 USD on a loan you took out for it, the amount of money you could feasibly obtain through a mobile home equity loan is $9,000 USD. You would have to use your mobile home and land as collateral for such a loan.
One of the first things you may do when you need to seek a mobile home equity loan is determine the value of your mobile home and the land upon which it sits, if you also own the land. Once you’ve determined its value, you can then subtract the amount you still owe to determine your equity in the mobile home. Having more equity in your mobile home may make you a more attractive potential borrower to lenders. Additionally, some lenders may prefer to grant this type of loan to people who own both land and mobile homes, rather than just mobile homes.
Once you’ve determined the amount of equity you have in your mobile home, you’ll need to shop around for a lender. You may obtain a loan from the company that originally granted your mobile home loan, but you may do well to obtain rate and term quotes from other lenders as well. This way, you can make sure you choose the mobile home equity loan that will cost you the least overall and prove the easiest to repay.
Before you apply for a mobile home equity loan, many financial experts recommend that you check your credit report with the major credit bureaus in your area. By doing so, you may find errors that could interfere with your ability to obtain a loan. If you report such errors to the credit bureaus that list them, they are usually required to investigate and remove any that are not valid.
When you are finally ready to apply for a mobile home equity loan, you will have to follow the application process outlined by the lender. You will typically have the opportunity to apply in person, though the mail, or via the Internet. You generally can expect to complete an application and provide supporting documents, such as financial statements, as part of the application process. Credit checks are common requirements as well.