Best Lenders to Prequalify for a Home Equity Loan or HELOC

Ready to tap into your home’s equity? Whether you’re looking for a home equity loan or a HELOC, prequalifying and getting preapproved can help you find the right financing. Prequalifying lets you know how much you might qualify for, while preapproval dives deeper into your finances to lock in more specific terms. 

Top-rated lenders Figure, Aven, and LendingTree make the process quick and easy. In this guide, we’ll explain prequalification and preapproval and help you choose the best lender for your needs. 

Best home equity lenders that let you prequalify or get preapproved

Finding a home equity lender that offers prequalification or preapproval can help you compare your options and plan your borrowing with confidence. The lenders below make it easy to explore your eligibility for a HELOC or home equity loan, so you can choose the right product for your needs.

Figure

Best HELOC Overall

4.9 _/5

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Why it’s one of the best to prequalify with

Figure’s prequalification process is 100% digital, offering a quick way to explore your potential HELOC terms without affecting your credit score. Figure’s preapproval—like most home equity lenders’—is completing its online application. Its platform ensures a seamless transition from prequalification to full application. 

Once you move forward, the company verifies your financial details and conducts a hard credit check to finalize your terms, maintaining transparency throughout the process.

HELOC details

Rates (APR)	6.95% – 16.01%
Funding amount	$15,000 – $400,000
Repayment terms	5, 10, 15, or 30 years
Min. credit score	640
Availability	Not available in Hawaii, Kentucky, New York, or West Virginia

Aven

Best HELOC Customer Reviews

4.8 _/5

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Why it’s one of the best to prequalify with

Aven simplifies prequalification by using a fast online system that provides potential terms without a hard credit inquiry. For preapproval, Aven builds on this process by verifying your financial information and conducting a hard credit check. 

With Aven, you can expect a streamlined experience with clear updates on your application status. This makes it easy to move from prequalification to preapproval with minimal friction.

HELOC details

Rates (APR)	6.99% – 15.49%
Loan amounts	$5,000 – $400,000
Repayment terms	5, 10, 15, or 30 years
Min. credit score	640
Funding time	As little as 3 days after signing
Availability	Available in 32 states*

LendingTree

Best Marketplace for Home Equity Loans

4.5 _/5

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Why it’s one of the best to prequalify with

LendingTree’s platform enables prequalification across multiple lenders without hurting your credit score. Preapproval processes will vary depending on the lender you choose through LendingTree. 

However, the platform offers resources to guide borrowers through lender-specific preapproval steps, including document requirements and timeline expectations. This flexibility and variety make LendingTree an excellent option to explore preapproval options with multiple lenders.

Loan details

Rates (APR)	Starting at 6.99%
Loan amounts	$10,000 – $2 million
Repayment terms	5 – 30 years
Availability	All 50 states

What is the difference between prequalification and preapproval? 

As you work toward getting a home equity loan or HELOC, prequalification and preapproval are two important steps you’ll likely take. You might see the terms used interchangeably, but they aren’t the same. Let’s take a closer look at how they differ.

What is prequalification?

Prequalification happens early in the process of getting a HELOC or home equity. To prequalify, you provide basic financial information to a lender or lender marketplace and find out how much you might qualify to borrow and at what terms. 

You can prequalify online with many lenders in just a few minutes. It’s an easy, informal process that uses self-reported information and a soft credit check to decide. The loan offers aren’t set in stone; they’re rough estimates based on the information you provided.

The purpose of prequalification is to see whether you qualify for a HELOC or home equity loan with favorable terms. This helps you narrow your options and determine which lenders to consider without committing to one particular offer.

What is preapproval?

Preapproval is more in-depth than prequalification and is essentially the same as applying for funding. 

This step requires you to submit documentation instead of relying on self-reported information. For example, you’ll likely need to provide paperwork that shows proof of identity, income, assets, liabilities, and home value—usually in the form of a property appraisal.

You’ll also agree to a hard credit check as part of the financial review. Because it’s a more involved process, preapproval can take anywhere from a couple of business days to several weeks, depending on the lender and the complexity of your finances. 

But in the end, the effort is worth it; you’ll have a conditional approval letter outlining the exact loan amount, interest rate, and repayment terms you qualify for. 

Tip

If your financial situation changes, the terms are no longer valid; you’ll need to apply again and submit updated documentation.

Here’s how the prequalification and preapproval processes compare for our top home equity loan and HELOC lenders:

Lender	Prequalification process	Preapproval/application process
Figure	100% online, completed in a few minutes with a soft credit check	Verification of financial details with a hard credit check required
Aven	Fast, fully digital prequalification with no hard credit check required	Requires a hard credit check and full documentation review
LendingTree	Prequalify with multiple lenders through a quick online application and no hard credit check.	Varies by lender but will likely require document verification and a hard credit check.

How prequalification works for home equity loans and HELOCs 

For most lenders, you can prequalify online in 15 minutes or less. All you need to do is provide basic information about yourself, your finances, and your home to view prequalified offers. 

Here’s what to expect when you prequalify with our top home equity loan and HELOC lenders:

Lender	Time to prequalify	Ease of process
Figure	5 minutes	100% digital process with a quick soft credit check. Review almost instant detailed preliminary terms.
Aven	15 minutes	Simple online system providing instant feedback on loan terms. Requires minimal information and no credit impact.
LendingTree	10 minutes	User-friendly platform that allows borrowers to prequalify with multiple lenders at once with just a soft credit check.

What’s the difference if you prequalify for a HELOC vs. home equity loan?

There’s little difference between prequalifying for a HELOC or a home equity loan. The criteria are basically the same, though it may be a bit harder to qualify for a HELOC. 

Here’s what lenders typically look at during prequalification:

• Your credit score to see how well you’ve managed debt in the past; 620 or higher is often recommended. 
• Your debt-to-income ratio (DTI) to see how much you spend each month repaying debt—and how much more debt you can afford to take on. Most lenders prefer a DTI of 43% or lower for a home equity loan or 50% maximum for a HELOC. 
• Your employment and income history to ensure you can handle payments.
• How much equity you have in your home to be sure there’s sufficient value to secure the credit line; 20% or more is generally required.

What’s the difference if you get preapproved for a HELOC vs. home equity loan?

 It’s possible to prequalify and even get preapproved for a HELOC and a home equity loan at the same time, as long as you meet the lender’s requirements. This can be a smart move if you’re not sure which option works best for you. 

For example, you may want to use a home equity loan to consolidate debt while tapping into a HELOC to cover ongoing home improvements. However, it’s important to borrow responsibly; though you may qualify for both, taking on too much debt could strain your finances.

The preapproval process for these two types of financing is similar: You’ll fill out a formal application with the lender and then provide supporting documentation; be ready with paperwork that shows proof of identity, income, assets, and debts. 

Many lenders also require a home appraisal and hard credit check before preauthorizing you for a HELOC or home equity loan. However, credit checks within a 45-day window count as a single inquiry, so shopping around won’t affect your credit much. 

After the lender reviews your application, the company will contact you with an offer detailing the loan amount, interest rate, and repayment terms you’ve been preapproved for. 

How preapproval works for home equity loans and HELOCs 

Getting preapproved for a home equity loan or HELOC gives you a clearer picture of the loan terms you qualify for. Because it’s based on a formal application and supporting documentation, it’s far more accurate than potential offers you may view during prequalification. 

Here’s what the preapproval process looks like for our top HELOC and home equity loan lenders:

Lender	Appraisal required for preapproval?	Details to know
Figure	❌	Figure uses automated valuation models (AVMs), which estimate your home’s value using market trends and public records, eliminating the need for an in-person appraisal.
Aven	❌	Aven uses AVMs to determine home value instead of a formal appraisal.
LendingTree	Varies	Appraisal requirements vary by lender. Some require a full property appraisal, and others use alternative valuation methods.

If my clients are pursuing preapproval for a HELOC or home equity loan, we first discuss their home marketplace conditions and establish realistic expectations with them. If the market is expected to go down, I may recommend that they delay taking out the loan and explore other avenues of funding their goal or using their cash reserves (if available) to then later replenish with the HELOC or home equity loan when their home marketplace improves.

Erin Kinkade, CFP®

How to prequalify for a HELOC or home equity loan 

You can prequalify for a HELOC or home equity loan in just a few minutes. Here are the steps to take:

1. Visit the lender or loan marketplace website.
2. Provide basic information, including your desired loan amount, name, address, email, phone number, income, employer, current debts, estimated home value, and remaining mortgage balance.
3. Consent to a soft credit check. Reputable lenders should tell you upfront that it’s a soft inquiry that won’t damage your credit. If in doubt, contact the lender directly to clarify before moving on to the next step.  
4. View the estimated loan amount, interest rate, and repayment terms you prequalify for.

How to get preapproved for a HELOC or home equity loan 

Getting preapproved for a HELOC or home equity loan is more involved than prequalification. Here’s the process to follow:

1. Decide whether a home equity loan or a HELOC is the right choice for you, prequalify to compare terms, and then choose a lender. 
2. Go to the lender’s website, and fill out an application.
3. Provide supporting documentation, including proof of income such as paycheck stubs, W-2 forms, or tax returns; proof of assets (bank records and statements for retirement accounts); proof of identity such as a driver’s license, passport, or Social Security number; debt information including statements for all current loans (mortgage, auto loans, student loans) and credit cards; and property information such as property tax statements, mortgage papers, and insurance documents.
4. Authorize the lender to do a hard credit pull to review your current credit score and credit history.  
5. Have a property appraisal done to verify the market value of your home, if required. 
6. Give the lender time to review your application, appraisal, and supporting documentation before it makes a lending decision; this could take several days to a couple of weeks, depending on the lender and the complexity of your application. 
7. Review the results. If you’re preapproved, you’ll receive a conditional preapproval letter outlining the details of your loan offer. 

After you’ve been preapproved, it’s time to decide whether or not you accept the loan terms. If you do, you can finalize the agreement by signing the loan documents and completing the closing process. Your home equity loan or credit line will then be available. 

When comparing prequalified or preapproved offers, beyond just the interest rate, it’s important to consider the amount you’ll need, the LTV, and the maximum borrowing amount. Also, look at the interest rate structure (variable versus fixed), additional fees or costs, and repayment terms to ensure it fits your budget. Finally, check whether the loan or line of credit has a prepayment penalty.

Erin Kinkade, CFP®

FAQ 

Can the terms of my HELOC or home equity loan change after I prequalify?

Yes, the terms of your HELOC or home equity loan can change after prequalifying. Prequalification is based on a preliminary review of your finances, and lenders use estimated information. 

Once you submit a full application, the lender will verify your credit, income, and property value, which could result in adjustments to your loan terms, such as the interest rate, loan amount, or repayment period.

Can the terms of my HELOC or home equity loan change after I get preapproved?

Yes, even after preapproval, the terms of your HELOC or home equity loan can change. Preapproval is more detailed than prequalification but is still conditional. If your financial situation changes significantly (e.g., job loss or increased debt) or the property’s appraised value is lower than expected, the lender may revise your terms or even withdraw the approval.

What should I do after prequalifying for a HELOC or home equity loan?

After prequalifying, review the terms provided, gather the necessary documentation, compare offers from other lenders, and avoid major financial changes that could affect your approval.

What should I do after being preapproved for a HELOC or home equity loan?

After preapproval, consider locking in your rate if available, complete your application by submitting all required documents, schedule the property appraisal if needed, avoid significant financial changes, and review the closing disclosure carefully before finalizing the loan.

How we selected the best home loans and HELOCs to prequalify with

Since 2018, LendEDU has evaluated home equity companies to help readers find the best home equity loans and HELOCs. Our latest analysis reviewed 850 data points from 34 lenders and financial institutions, with 25 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the best home equity lenders to prequalify with