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

A home equity loan is a way you can tap into the equity you’ve built in your home to borrow money. Homeowners use home equity loans to cover the cost of renovations, tuition, consolidating high-interest debt, and a variety of other reasons.

By using your home as collateral, a home equity loan can get you access to lower interest rates than other borrowing options. It typically takes anywhere from 2 weeks - 2 months to get a home equity loan¹, though the exact timeline will depend on several different factors. Here’s a closer look at the process of getting a home equity loan and what impacts the timeline.

Home equity loan process and timeline

The amount of time it takes to get a home equity loan will vary depending on each step of the process. Let’s take a look at what’s required to apply and get approved for this type of second mortgage.

1.  Shop around and compare lenders: 1 – 10 days

The first step in getting a home equity loan is figuring out which lender to work with. Whether it’s a national online lender or a local bank, you’ll want to get a quote from at least a few different lenders before choosing the right one for you. That way, you can compare rates and fees to make sure you’re getting the best deal. Shopping around can help you save money and find the lender that’s the best fit.

2.  Get preapproved: 1 - 3 days

Preapproval from a lender will give you a rough estimate of how much you’ll be able to borrow. While it’s not the same as a final loan offer, you’ll be able to get a ballpark range of the interest rate you’ll be charged and the monthly payment you’ll owe.

To get preapproval for a home equity loan, you’ll provide the lender with different documents that reflect your financial situation. This gives the lender an idea of how much you can afford to repay and how much risk you pose as a lender. You can expect to be asked for pay stubs, bank statements, tax returns, and W-2s. Your lender will also need to check your credit.

Next, you’ll be given a Loan Estimate with the tentative terms of your home equity loan. Know that these figures may change depending on the results of your home appraisal and the current value of your home. If you aren’t happy with the terms of your loan, you can simply go with a different lender without cost or penalty. If the Loan Estimate offers terms that you’re satisfied with, then you can proceed to the next step.

3.  Complete your application: 1 day

Once you select a lender, you’ll need to fill out their home equity loan application. Lenders will typically require that you provide personal information such as your full name, address, Social Security number and employer. You’ll also have to provide information on your gross monthly income, debts, and how much you owe on your primary mortgage.

If you haven’t already, you’ll need to provide your lender with copies of your paycheck stubs, tax returns, and other financial records to verify your income. How long this process takes is up to you. You can usually complete an application in just a few hours.

4.  Have your home appraised: A few days - a few weeks

Once your lender receives your application, it will order a home appraisal to determine your home’s current market value. The amount of equity you have in your home is based on how much it’s worth and how much you still owe. The lender needs to know the current value of the home to determine how much you can borrow. If an appraiser determines that your home is worth $350,000 and you owe $150,000 on your mortgage, you have $200,000 in equity.

An appraisal itself doesn’t take long. An appraiser will often finish touring your home and property within 30 minutes. It typically takes just a few days for the appraiser to complete and submit the appraisal report. However, it can take up to several weeks to get the report back depending on the appraiser’s schedule and the complexity of the home.

5. Go through underwriting: Up to 1 month

During the underwriting process, your lender will review your financial information, including your income, assets, debts, and credit history. The purpose of this stage is for the lender to confirm that you can afford your new monthly loan payment.

How long this takes will vary, but underwriting for a home equity loan can take several weeks to one month. Underwriting can take longer if there are any unusual deposits or withdrawals. You can help speed the process by quickly answering any questions that your lender has and promptly providing any requested documents.

6. Close on your home equity loan: 1 day

Once your lender approves you for a home equity loan, your closing date will be schedule. This is when you’ll sign the documents that make your loan official and pay any closing costs. Your loan’s closing should not take more than 1 day. Borrowers also have a right to rescission, which means you can cancel your loan within 3 business days if you change your mind.

Home equity loan qualifications

The exact qualification requirements for a home equity loan will vary by lender, but here are some general guidelines to expect:

• Credit score: You might be able to qualify for a home equity loan with a credit score as low as 620, but many lenders require higher. Rocket Mortgage^® requires a score of at least 680.
• Debt-to-income ratio: Your debt-to-income ratio measures how much of your monthly income is consumed by your recurring debts. This can include your mortgage, credit card minimum, auto loan, student loans, and new home equity loan payment. Lenders may prefer that these debts equal no more than 50% of your gross monthly income.
• Home equity: You’ll need to have a minimum amount of equity in your home to qualify for a home equity loan. Lenders typically allow to you to borrow up to 80% - 90% of your home’s loan-to-value ratio (LTV), so you’ll need to have 10% - 20% equity built.

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

Home equity loan borrowers can expect to receive their funds quickly after closing – typically within 3 business days.

Factors that can delay your home equity loan approval 

Here are some of the factors that can slow down the approval of your home equity loan and the dispersal of funds:

• Incomplete or inaccurate paperwork: If your lender finds problems with your paperwork – such as a suspiciously large deposit in your savings account or a sudden dip in your yearly income from last year’s tax return – answer questions quickly. The faster you can clear up any problems, the sooner your loan will close.
• Home appraisal delays: If it takes several weeks to order an appraisal, that will delay your loan’s closing and lengthen the time from application to receiving your funds. If the appraisal comes back lower than expected, that can impact how much you can borrow.
• Title issues: Your loan closing can be delayed if your lender finds issues during the title search. If the title search reveals a lien against your home or you owe back taxes, these issues will need to be resolved before your loan closes.

Tips for getting your home equity loan approved quickly

Here are some steps you can take to help speed up the home equity loan process:

• Know the requirements. Before applying for a home equity loan, know what that lender requires from borrowers. Check your credit score and make sure you meet the lender’s minimum requirement. Getting a home equity loan with bad credit isn’t impossible, but you’ll need to lender willing to lend to borrowers with spottier credit histories.
• Improve your DTI. Reducing your debt-to-income ratio can make it easier to get approved for a home equity loan. You can take steps to improve your DTI by paying down existing debt, boosting your income, and avoiding new debts.
• Have sufficient equity in your home. Make sure you have enough home equity to qualify for a home equity loan. While it’s typically not necessary to pay for an appraisal before you apply, you can estimate your home’s value by researching the purchase price of similar homes in the area that have recently sold. Then, you can subtract what you still owe on your mortgage.
• Have your documentation ready. Gather copies of your paycheck stubs, bank statements, income-tax returns and W2 forms before applying for your loan. That way, you can provide them quickly to your lender.
• Respond promptly to lender communications. If your lender reaches out with questions or requests additional documentation, be sure to get back to them in a timely fashion to avoid delays in the approval process.

Home equity loan timeline FAQ

Here are the answers to some more questions about the home equity loan timeline.

How fast can I get a home equity loan?

The time it takes to get a home equity loan will depend on your lender, financial situation, and how quickly you can complete the necessary paperwork. In general, you can expect the process to take between 2 weeks and 2 months. You can speed up the process by answering your lender’s questions quickly and providing the documents it needs in a timely manner.

How long does it take to repay a home equity loan?

Home equity loans come with varying terms, most ranging from 5 - 30 years.

Can I pay off a home equity loan early?

You can always pay off a home equity loan early. However, make sure that your lender does not charge prepayment penalties, which are fees for paying of the loan early.

Can I use a home equity loan to pay off my mortgage?

It is possible to use a home equity loan to pay off your primary mortgage. This only makes sense, though, if your home equity loan comes with a lower interest rate than your primary mortgage. Using a home equity loan this way allows you to pay off your mortgage early without having to sell your home or refinance.

Is it hard to get a home equity loan?

To get a home equity loan, you’ll need to have good credit, a low DTI, and enough equity built in your home.

How long does it take to get a HELOC?

Getting a home equity line of credit (HELOC) requires a similar timeline as a home equity loan. It can take anywhere from 2 weeks to 2 months depending on your lender and financial situation.

The bottom line: A home equity loan could be your solution

Home equity loans allow you to use your home’s equity to borrow money for anything you’d like. Whether you’re looking to complete home repairs or consolidate high-interest debt, a home equity loan could be the financing solution you need. However, you’ll need to be sure you can afford the additional monthly payment. If you think a home equity loan might be right for you, you can start the process of getting approved today.

[1] Home Equity Loan product requires full documentation of income and assets, credit score and max loan-to-value (LTV), combined loan-to-value (CLTV), and home equity combined loan-to-value (HCLTV) ratios. Requirements were updated 11/19/25 and are tiered as follows: 680 minimum FICO with a max LTV/CLTV/HCLTV of 80%, 700 minimum FICO with a max LTV/CLTV/HCLTV of 85%, and 740 minimum FICO with a max LTV/CLTV/HCLTV of 90%. Your debt-to-income ratio (DTI) must be 50% or below. Valid for loan amounts between $45,000.00 and $500,000.00 (minimum loan amount for properties located in Michigan is $10,000.00). Product is a second standalone lien and may not be used for piggyback transactions. Product not available on Ameriprise products. Guidelines may vary for self-employed individuals. Some mortgages may be considered “higher priced” based on the APOR spread test. Higher priced loans are not allowed on properties located in New York. Additional restrictions apply. This is not a commitment to lend.

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