WELCOME AN EXPERIENCE YOU LL

Full text

(1)
(2)

If you’re looking for a home equity loan, you’ve come to the

right place. With Capital One, the process is easy. We work

to ensure things run smoothly from beginning to end, and

we always keep you informed.

It’s our goal to provide you with better service, better

support and a better lending experience. To that end, this

easy-to-follow home equity guide lets you know what you

can expect from us and what we’ll expect from you.

AN EXPERIENCE YOU’LL

WELCOME

(3)

A GOOD PLAN

IS A GREAT THING

Here’s an overview of how we can work together to help things run smoothly. A more detailed explanation is included in the “how it works” insert.

US

YOU

APPLICATION

REVIEW

Review your application in the next 1-2 days.

Gather income and other documents that will be needed to process your loan.

COMMITMENT

Present you with an initial offer that details rate and loan terms. Give you a full list of documents needed.

Accept your initial offer in person or online. Submit documents required for us to proceed with your loan.

VERIFICATION

Review income documents along with appraisal and insurance information.

Promptly return any follow-up information requested.

CLOSE AND

FUND LOAN

Schedule closing meeting with you. Provide funds within a few days.

Attend closing meeting to sign contract. Tell us how you want funds disbursed.

Whether you’re looking to make home improvements, consolidate balances or pay for other important expenses, we’ve designed a clear, straightforward way to do it.

CONSIDER YOUR CHOICES

HOME EQUITY LOAN — Receive a one-time loan and repay it in fixed monthly

payments. Since this is a fixed-rate loan, the interest rate will stay the same throughout the life of the loan.

HOME EQUITY LINE OF CREDIT — Access the funds you need through a revolving

line of credit and make payments on what you withdraw. Since this is a variable-rate loan, the interest rate is subject to change over time.

KNOW WHAT HAPPENS NEXT

We’ll go over your application and conduct a preliminary review. If we decide to conditionally approve the loan, we’ll present you with an offer letter. Once you review and accept the terms of the offer letter, your Loan Specialist will give you a call to walk you through the process.

KEEP THIS GUIDE HANDY

The enclosed sheets detail how every step in the process works, what you’ll need to keep things running smoothly, how we make our decision and how you can track your loan’s progress online. It’s all part of our goal to make the process easier for you.

(4)

HOW IT WORKS

The more you know about your loan process, the easier it is to go from one step to the next. This chart details the roles we each play, so there won’t be any surprises along the way.

STEPS WHAT WE DO WHAT YOU DO

1. BEGIN LOAN PROCESS Work with you to determine the best

loan solution for your needs. Once you’re ready, your Relationship Banker can assist you with applying for a loan.

Explore loan solutions and apply for the option that works best for you. Provide personal information as requested.

2. APPLICATION REVIEW Pull your credit report, review your

application, and, in most cases, provide you a decision by the next business day.

Review your Home Equity Guide and set up your account on My Loan Status (MLS) to track your loan application.

3. PRELIMINARY OFFER Present you with an offer that details your

loan terms. Once you accept your offer, one of our Loan Specialists will give you a welcome call.

Accept your offer (through your Relationship Banker or online through MLS).

4. GATHER IMPORTANT DOCUMENTS

Review with you the required list of documents needed to proceed with the loan.

Gather and submit the required documents in order to proceed with the loan. See the “What You’ll Need” section of this guide.

5. INCOME REVIEW Review income documents submitted

to meet qualifications of your loan.

Respond with any additional information needed as requested by your Loan Specialist or prompted on MLS.

6. APPRAISAL AND TITLE VERIFICATION

Order appraisal and run title search. Review homeowners insurance and flood insurance, if applicable.

If interior appraisal is needed, the appraiser will call to finalize a date for the home visit. If the Loan Specialist contacts you, respond promptly with any follow-up information related to title or insurance issues.

7. PREP FOR CLOSING Schedule closing date and location by

coordinating with you and any third parties (if applicable). Prepare all loan documents.

Choose the most convenient closing date from the options we provide. Respond promptly to any outstanding items.

8. CLOSING Provide closing kit. Walk through closing

checklist with you.

Attend and sign documents. Pay origination fee and taxes, if applicable.

9. THREE-DAY RESCISSION PERIOD

Respond to any of your questions or requests.

If you decide not to proceed with the loan, contact your Loan Specialist and submit the rescission letter supplied in your closing kit.

10. FUNDING The bank will make funds available per

your instructions.

Access or receive funds on the 5th business day from closing.

(5)

WHAT YOU’LL NEED

While we’re doing our part, you can do yours. Use this list, and the chart on the other side, to gather the paperwork you’ll need. Then upload the requested documents online through MLS, provide them to your Relationship Banker, or fax directly to your Loan Specialist. We’ll also be providing you (via MLS and mail) a loan kit with relevant disclosure documents for your signature. If you have any questions along the way, give your Relationship Banker or Loan Specialist a call.

ONLY WHEN WE RECEIVE THE FOLLOWING DOCUMENTS CAN WE PROCEED WITH YOUR LOAN. PLEASE NOTE THAT WE MAY NEED ADDITIONAL DOCUMENTS BASED ON YOUR SPECIFIC SITUATION.

PROOF OF INCOME:

WAGE-EARNER EMPLOYEE

MOST RECENT PAY STUB: Please ensure that your pay stub shows at least 30 days of year-to-date income.

W-2s: For Home Equity Loans, we need the prior two years of W-2 statements. For Home Equity Lines of

Credit, we need only your prior-year W-2 statement.

SELF-EMPLOYED

INDIVIDUAL AND BUSINESS TAX RETURNS: Prior two years of signed individual and business tax returns,

including all schedules and any contingent liabilities.

PROFIT/LOSS (P&L) AND BALANCE SHEET STATEMENTS (HOME EQUITY LOAN ONLY): Year-to-date P&L and

Balance Sheet statements for your business. A CURRENT MORTGAGE STATEMENT AND PROPERTY TAX BILL

Be sure your mortgage statement includes your account number or loan number, and the lender’s phone number. If not included on your mortgage statement, we will also need a copy of your prior year’s property tax bill.

HOMEOWNERS INSURANCE AND FLOOD INSURANCE

Include your homeowners insurance declaration statement, indicating the coverage on your home as well as your insurance agent’s name and phone number. If you live in a flood zone, please include your flood insurance declarations page. Please note: A separate flood policy is required for each building on your property with a value of $1,000 or more.

SIGNED NOTICE OF EXTENSION OF CREDIT (TEXAS RESIDENTS ONLY)

Your Relationship Banker or Loan Specialist will provide you a notice of extension of credit form to sign and submit. Please be sure that the notice is signed by all owners and spouses.

TO SUBMIT DOCUMENTS LISTED:

Online: Sign into MLS to upload documents Fax: 855-359-6402

(6)

REQUIREMENT HOME EQUITY LOAN HOME EQUITY LINE OF CREDIT

VERIFICATION OF EMPLOYMENT Written verification for the past

24 months

N/A

RENTAL PROPERTY INCOME Prior two years of signed personal

returns with all schedules; copy of the current lease

Prior two years of signed personal returns, if newly acquired lease

SOCIAL SECURITY INCOME Social Security Award Letter Social Security Award Letter, bank

account statements, or Tax Returns

RETIREES Most recent Benefits statement;

signed Tax Returns

Account statements or most recent Benefits statement

ALIMONY PAYMENTS* Divorce decree; proof of receipt of alimony

MILITARY INCOME Leave and Earnings statement

OTHER LOAN(S) SECURED BY HOME Current statement

*You are not required to disclose alimony, child support, or separate maintenance income unless you wish for these to be considered as a basis for repayment.

This chart details documents that are in addition to the documents called out on the other side, and apply only to special circumstances.

FOR THE COMPLETE LIST OF DOCUMENTS REQUIRED BASED ON YOUR INDIVIDUAL CIRCUMSTANCES, LOG IN TO MLS AND CHECK THE ‘LOAN REQUIREMENTS’ SECTION, OR GIVE YOUR LOAN SPECIALIST A CALL.

(7)

HOW WE DECIDE

A loan is an important step for you and for us. That’s why we take the time to consider your application carefully and thoroughly. Keep in mind, all loans are subject to credit approval. And while there are many factors that go into our decision, three pieces of information play a key role in the outcome:

1. YOUR CREDIT HISTORY

We’ll look at your past loans and credit accounts, and we’ll check your credit rating through a reputable credit bureau. Keep in mind, it’s important for you to check your credit report at regular intervals to make sure the information is accurate. 2. YOUR CURRENT DEBT OBLIGATIONS AND EXPECTED MONTHLY PAYMENT

To determine your ability to repay your loans, we do a couple of things. First, we’ll calculate the monthly payments from your proposed home equity loan. Then we’ll compare this to your monthly gross income level. We refer to this ratio as the payment-to-income ratio.

Example: Jane has a monthly income of $5,000. The monthly payment for her new Capital One Home Equity Loan is $500. Payment-to-income ratio: $500 ÷ $5,000 = 10%.

We will also add up other monthly debt payments (including credit cards, auto loans, lines of credit, child support, etc.) to the home equity payment, and compare this to your income. We refer to this as the debt-to-income ratio.

Example: In addition to the monthly payment for her Capital One Loan, Jane has monthly debt payments that total $1,000. Debt-to-income ratio: ($1,000 + $500) ÷ $5,000 = 30%.

3. THE VALUE OF YOUR HOME AND THE EQUITY YOU OWN IN IT

It’s important to understand how much equity you have in your home in order to determine how much you are eligible to borrow. We’ll assess the value of your home using a home appraisal or a home evaluation model. For appraisals, we rely on independent appraisers to assess the fair market value of your home. Appraisers can have no monetary ties or personal relationships with any bank they support.

The appraisal or evaluation of your home is then used to calculate a combined loan-to-value ratio. This is the ratio of the total “combined” amount of the loans secured by your home (including the home equity loan you are applying for) as compared to the amount at which your home has been appraised or valued. Capital One Bank sets a maximum combined loan-to-value ratio on our real estate loans that varies based on type of loan and your geographic location.

Example: Bob has a $200,000 mortgage on his home, which is valued at $350,000. He wants to take out a $50,000 home equity loan to remodel his home. Combined loan-to-value ratio: ($200,000 + $50,000) ÷ $350,000 = 71%.

(8)

HOW TO KEEP INFORMED

While it helps to know all the steps, knowing exactly where you are in the home equity process will make it an even

smoother experience. With MY LOAN STATUS (MLS), our easy-to-use online tool, you can follow the status of your

Home Equity Loan application every step of the way. You will be notified via email when there are any new messages for you to review on MLS.

1. VISIT YOUR PERSONALIZED MY LOAN STATUS HOMEPAGE

If you are a new customer, you will need the Customer Number (CIF) given by your banker after applying. Please make sure to hold on to this number as you may need it at a later time. If you are an existing Capital One 360 customer, you will simply need to log in to your account.

Banking Investing Retirement Capital One

Products Help & More

Saver Since August 01, 2012

john.smith@abc.com

20-Year Home Equity Loan

Application submitted on 02/20/2013 Applied Applied Applied

Check My Loan Status

My Accounts

Account Type

My Savings Goals

Loans

Account # Balance Available

Summary

My Accounts eStatements My Info

6. Click on the ‘Check My Loan Status’ link on the ‘My Accounts’ page

Find a bank branch/ATM View products for ZIP: 19102

Search

Capital One Home > Home Equity Loans > Home Equity Loans and Lines of Credit

Enter your ZIP code below to see Capital One home equity products in your area!

Print Contact Us Access your account

Capital One, N.A., NMLS ID 453156.

Capital One offers home loans in the following states:

North East

New York (NY) Connecticut (CT) New Jersey (NJ)

Check out our Home Equity Loans See what’s available in your area. Enter your ZIP code

Go Go Mid-Atlantic Delaware (DE) Maryland (MD) Virginia (VA) Washington (DC)

South & West

Louisiana (LA) Texas (TX)

Sign In Customer Service

Capital One Bank

Ready for your new home loan?

Home Equity Loans and Lines of Credit

Business Investing Loans Banking Credit Cards

CAPITAL ONE HOME EQUITY LOANS NOW SERVING

Open AccountSign In

Search BankingInvestingRetirementCapital One

Create Sign In PIN Create your new Sign In PIN between 6-10 digits in length using the PIN pad below.

Products Help & More

Submit 1 ABC2 DEF JKL GHI MNO TUV PQRS Clear WXYZ 3 4 5 6 7 8 0 9 1 ABC2 DEF JKL GHI MNO TUV PQRS Clear WXYZ 3 4 5 6 7 8 0 9 4. Finished! 3. Security Questions 2. Image and Phrase

1. Sign In Info

Verify Sign In PIN Verify your PIN using the PIN pad below and then click ‘Continue’. Please memorize your entry as it will not be repeated back to you

If you’re unable to use your mouse, you may also use your keyboard.

My Accounts 1. Go to www.capitalone.com/home-equity

and click on the ‘Access your account’ link 3. New customers enter Customer Number (CIF)

4. Enroll to begin the log-in process 5. If you’re a new customer, you’ll be asked to create a PIN and complete a one-time-only sign-in enrollment process

Open AccountSign In Search BankingInvestingRetirementCapital One

To check on your loan status you will need to enroll in our sign in process. Please verify your Social Security Number to start the process. Last 4 digits of your Social Security Number:

Products Help & More

Continue

My Accounts

Enroll

Continue Sign In

Banking Investing Retirement Capital One

My Accounts Products

Hide My Typing

Remember my Customer Number Saver ID (Username)

Forgot your Customer Number/Saver ID (Username)?

Customer Number/Saver ID (Username)

Find a bank branch/ATM View products for ZIP: 19102 Search

Capital One Home > Home Equity Loans > Home Equity Loans and Lines of Credit

Enter your ZIP code below to see Capital One home equity products in your area!

Print Contact Us Access your account

Capital One, N.A., NMLS ID 453156. Capital One offers home loans in the following states:

North East

New York (NY) Connecticut (CT) New Jersey (NJ)

Check out our Home Equity Loans See what’s available in your area. Enter your ZIP code

Go Go Mid-Atlantic Delaware (DE) Maryland (MD) Virginia (VA) Washington (DC)

South & West

Louisiana (LA) Texas (TX)

Sign In Customer Service

Capital One Bank Ready for your new home loan?

Home Equity Loans and Lines of Credit Business Investing Loans Banking Credit Cards

CAPITAL ONE HOME EQUITY LOANS NOW SERVINGAccess Your AccountMortgage Account - Sign In

Mortgage Application - Check Status Home Equity Account - Sign In Home Equity Application - Check Status

Close

2. Click on ‘Home Equity Application – Check Status’

2. TRACK THE PROGRESS OF YOUR LOAN IN REAL TIME

Loan Documents

Loan Status Loan Requirements Loan Information Loan Messages FAQs & Contact

Your application was received on 2/15/2014.

1Application Submitted

2 Application Decisioned

3 Documents Sent to You

4 Accepted Loan Offer

5 Documents Received by Us

6 Flood Certification

7 Home Appraisal

8 Title Search

9 Final Loan Approval

A decision was made regarding your application on 2/15/2014. See above for the decision.

Tell us what you thought of the application process.

Please review your documents on the “Loan Documents” tab. You’ll need to complete and return some of the documents in the packet.

Your Good Faith Estimate is available to review on the “Loan Documents” tab. Please review it and, if you like what you see, accept your offer on the “Loan Information” tab. We received all your required documents on 2/15/2014. Thank you! What’d you think of the document return process?

We will order a flood certification on your home to determine if the property is located in a flood zone.

Once the home appraisal is completed and all other steps are checked off, you’ll be ready to close on your loan.

We’ve ordered a title search on your home and we’re awaiting results. Once the above steps are completed, your title company will call you to schedule your closing.

Processing Steps Completed Actions and Information

Your Home Loan documents are now available on the “Loan Documents” tab. You need to complete and return some of these documents. Remember, the sooner we get them back, the sooner you can close on your new Home Loan.

(9)

3. MONITOR THE STATUS OF REQUIRED DOCUMENTS

Loan Documents

Loan Status Loan Requirements Loan Information Loan Messages FAQs & Contact

Documents Required by Capital One Status Message

Here are all the required documents you’ll need to provide us in order to close on your loan. Securely upload these documents from the ‘Loan Documents’ tab, or fax them to 1-855-359-6402.

Please complete and return document.

Please complete and return document.

Please complete and return document.

Provide a signed and dated copy of the ‘Authorization to Release Information’ form included in your Current Offer Package.

Copy of declaration page of the homeowners insurance policy, including annual premium amount and the lender listed as loss payee.

Proof of satisfaction and funds used to pay off the following mortgage: Smith, John, ABC Bank, 123456789, $155,000.00

Action Required

Action Required

Action Required

Provide a signed letter explaining the use of the cash out

proceeds from this loan. Action Required Please complete and return document.

4. UPLOAD OUTSTANDING DOCUMENTS

Document Description

Here you’ll find all of the loan documents from Capital One, and all the documents you’ve submitted for us to review. Review ‘Loan Requirements’ tab for a list of all the required documents you’ll need to provide, then click the ‘Upload Documents’ button to securely upload a file, or fax them to 1-855-359-6402.

These documents include everything you need to know about your Home Loan offer.

These documents must be reviewed, signed, and returned to us. Contains your estimated closing costs which you must review prior to

accepting your loan.

Click on a document to download it in Adobe PDF format. Current Offer Package - 02/19/2014 Current Good Faith Estimate (GFE) - 02/19/2014 New Documents That Require Signatures - 02/19/2014 Documents From You (0)

Documents From Us (3) Loan Documents

Loan Status Loan Requirements Loan Information Loan Messages FAQs & Contact

Upload Documents

5. RECEIVE IMPORTANT MESSAGES REGARDING YOUR LOAN

Here’s the place to check out secure messages from us that we don’t want to share by general email. We’ll shoot you an email at your regular address to let you know when you have a new message.

What is the Message Center? FAQs

Is it safe to include personal and account information in a message?

How do I download an attachment you’ve sent me?

Messages will be automatically deleted 90 days from the date they were sent.

Appraisal More Info Needed

Home Equity Home Equity

Feb 21, 2014 10:57 AM Jan 09, 2014 01:19 PM Loan Documents

Loan Status Loan Requirements Loan Information Loan Messages FAQs & Contact

Subject From Date Sent

6. ACCESS ANY INFORMATION YOU NEED AT ANY TIME

• Review loan terms

Check loan status

• View a personalized list of documents needed

Confirm uploaded documents

• Get messages

(10)

WHAT ELSE YOU SHOULD KNOW

Throughout the process, some questions may arise. Addressing them now could make things go faster and easier. Below are some important things you may want to discuss with your Loan Specialist if they apply to you.

ARE THERE ANY ADDITIONAL NAMES ON THE TITLE OF THE PROPERTY?

If so, they must be at the closing to sign the security instrument. We will let you know if anyone else needs to be present. DO YOU LIVE IN A FLOOD ZONE?

If you live in a flood zone, your house will need flood insurance. Federal regulations require you to insure any structure with two or more outside rigid walls and a fully secured roof that is affixed to a permanent site. Insurance may be required on structures such as storage sheds, RV ports, workshops, etc.

HAS YOUR HOME BEEN APPRAISED RECENTLY?

Be aware that your home’s value may have changed since your last appraisal. HAVE YOU HAD OTHER LIENS AGAINST YOUR HOME?

Check with your lender to make sure there aren’t any liens on the property listed on the title that need to be closed. HAVE WE REQUESTED TO SUBORDINATE A LIEN AGAINST YOUR HOME?

Subordination is a complicated request. Please talk to your Loan Specialist if you have any questions. WILL YOU BE SETTING UP AUTOMATIC PAYMENTS?

If you set up automatic payments from a checking or savings account, you may be eligible for a 0.25% discount. Speak to your Relationship Banker or Loan Specialist for details, and to see if you qualify.

(11)

Upon approval, your loan or line amount may vary based on your specific situation. Additional fees may be due at closing. Additional terms and restrictions apply. Loans are subject to credit approval. Products and services are offered by Capital One, N.A., NMLS ID 453156, Member FDIC.

© 2014 Capital One. All rights reserved. LEND-5420 REV. 07/2014

Figure

Updating...

References

Updating...

Related subjects :