How Long Does It Take to Get a Home Equity Loan?

Based on our research of several lenders, closing times for home equity loans are around two to seven weeks. If the speed of funding is your top priority, a home equity line of credit (HELOC) might be a better option: Certain HELOC lenders could approve and fund your credit line in as little as three days. (Check out the best HELOCs.)

But if you prefer the predictability of fixed monthly payments, you may prefer a home equity loan. Here’s how long it takes to get a home equity loan with certain lenders and what to expect from the process. 

How long does it take to apply for a home equity loan?

Applying for a home equity loan can take anywhere from a few minutes to several days, depending on how fastyou gather required documents and submit your application.

Your lender will request several documents as part of the application process, and most lenders require a home appraisal as a condition of loan approval. This helps ensure the loan won’t put you underwater, owing more on your home than it’s worth.

Generally, your lender will request personal information, such as your name, address, Social Security number, birth date, and a copy of your driver’s license. It will likely also ask for financial documents, including those listed below. Gathering these beforehand can expedite the application process and decrease the likelihood that your lender will come back to you requesting more information:

• Recent pay stubs
• Past two years of W-2s
• Copies of your federal tax returns
• Homeowners insurance declaration page
• Recent mortgage statement
• Recent property tax statement
• Proof of pension or investment income (if you’re retired)

Once you’ve gathered these documents, it’s time to get started. It can be helpful to start with a loan comparison tool. Our favorite is LendingTree, which lets you view rates and loan options from multiple lenders under one umbrella. Most lenders now offer an online application process, and some may let you prequalify for a home equity loan to preview your potential rate. 

We generally recommend prequalifying: You aren’t subject to a hard credit check, and it could help you find the lowest possible rate. You provide basic personal and financial information to prequalify in just a few minutes. 

You can work on a formal application after you’ve found a lender. Remember that underwriting and appraisal time frames can vary by lender. Here’s what the formal application process looks like and how long each step generally takes:

1. Apply online, providing all necessary personal and financial documentation. (As little as a few minutes.)
2. Wait for your lender to contact you with a loan decision. (As soon as a few business days.)
3. Await closing and sign final loan documents. (Up to 45 days.)

Here’s our research into how long it takes to apply for a home equity loan with several popular lenders. Note the process can take as little as a few minutes.

Home equity loan lender	Application time
Prosper	Minutes
Rocket Mortgage	Less than three hours
U.S Bank	Minutes

Read More

Best Home Equity Loans

How long does it take to get a home equity loan approved?

Approval for a home equity loan typically takes a few days to a few weeks, depending on your lender’s processes and whether a home appraisal is required.

The time frame for loan decisions varies widely by lender, and we found that many lenders don’t disclose how long the process takes.  

Before making a decision, your lender will order an appraisal of your home, and then its underwriting team will review your application in depth.  

How long does the appraisal take for a home equity loan?

Appraisals can take anywhere from a few minutes for automated valuations to several days or weeks for in-person assessments.

Many lenders have embraced automated valuation model (AVM) appraisals, which are digital and rely on recent sales, tax assessments, and other data to determine your home’s value.

Other lenders may still schedule in-person appraisals, where an appraiser comes to your home, assesses your home’s exterior and interior, and submits their appraisal to your lender. 

Generally, AVM appraisals happen faster than in-person appraisals and often cost less. Your lender will determine which type of appraisal it requires, but you can ask before applying. Those offering AVMs might have faster closing times.

Read More

How Is Home Value Determined for a HELOC? 

How long does underwriting take for a home equity loan?

Underwriting for a home equity loan can take a few weeks; the lender evaluates your financial details and application thoroughly.

During the underwriting process, a member of your lender’s underwriting team will evaluate your application, financial information, and credit history. This evaluation will determine whether you qualify for a home equity loan and, if so, your loan amount and term.

Most of the lenders we evaluated don’t share their time frames for underwriting home equity loans. Discover was the exception, which indicated that approval could take around four weeks.

How long does it take to get funds from a home equity loan?

After approval, you can typically get funds within a few days to a few weeks, depending on your lender’s closing and disbursement process.

The closing could be in person or virtual. During closing, you’ll sign all your final loan documents, which can take a couple of hours. 

You don’t have much control over when your lender schedules loan closings and funding times, and both may vary by lender. As you can see from the table below, some lenders may close on a home equity loan as soon as 11 days, while others may take up to 45 days. Lenders typically disburse loan funds within a few days of closing. 

Before you apply, ask your lender how long it typically takes to fund a loan. This is especially important if you need funds right away to cover an upcoming expense. 

Home equity loan lender	Funding time
Prosper	As fast as 11 days
Spring EQ	As fast as 14 days
Navy Federal	30 – 45 days
Rocket Mortgage	Up to 45 days
Discover	Up to 45 days

How long does it usually take to get a home equity loan vs. a HELOC?

Home equity loans may take longer to get than HELOCs. Traditionally, home equity loans take two to seven weeks to process and fund, while HELOCs take two to six weeks. 

Certain lenders may approve and fund a HELOC within a few days. For instance, the financial technology company and lender Figure indicates that borrowers could get HELOC funds in as little as five days. 

HELOCs typically have variable rates, and home equity loans have fixed rates. Variable rates change based on market conditions, while fixed rates stay the same for the life of a loan. That means your monthly payments for a HELOC could increase or decrease over time, and your payments for a home equity loan will be more predictable.

Even if timing is a critical factor, I would advise my clients to consider their particular needs when deciding between a home equity loan and a HELOC and which option is better long-term. 

Flexibility in drawing funds, fixed or variable interest rates, and the effects of loan payments on cash flow are all important factors to consider.

Chloe Moore, CFP®

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How Long Does It Take to Get a Home Equity Loan or HELOC?

FAQ 

How long after closing on a home equity loan do you receive money?

After closing, you typically receive your funds within three to five business days. This delay is due to the three-day right of rescission period, a federal requirement that gives borrowers time to cancel the loan if they change their mind.

What factors affect the length of the home equity loan process most?

The length of the home equity loan process can vary based on several factors. Property appraisals often take time, especially if the lender requires an in-person visit. Lenders also conduct thorough income and credit verifications to assess risk, which may slow the process. 

A title search to confirm there are no liens or title issues on the property can add additional time. External factors, such as high lender demand or staffing delays, can also extend processing times. How fast you respond to requests for documentation plays a significant role in avoiding delays.

Are there ways to speed up the home equity loan process?

Yes, you can take steps to expedite the process. Choosing lenders that offer streamlined approvals through automated appraisals or digital verification can save time. Preparing your paperwork in advance, such as income statements, tax returns, and proof of homeownership, can also help avoid delays. 

Opting for expedited appraisals, such as drive-by or automated options, may further shorten the timeline. Responding promptly to lender requests for additional information is another effective way to keep things moving.

What are my options if I need faster access to funds?

If you need fast funds and a home equity loan takes too long, consider faster alternatives. HELOCs often process faster, typically within two to six weeks, and provide flexibility to borrow as needed. (Best HELOCs)

Personal loans from online lenders can be funded in as little as one to three business days, but they may come with higher interest rates. (Best Personal Loans)

For small, short-term emergencies, cash advance apps such as EarnIn or MoneyLion offer quick access to small amounts, often within hours. (Best Cash Advance Apps)