Unlock Your Home Equity with Figure
- Approval in 5 minutes. Funding in as few as 5 days
- Borrow $20K-$400K
- Consolidate debt or finance home projects
- Fastest way to turn home equity into cash
- 100% online application
Unlocking the equity in your home through a high-limit Home Equity Line of Credit (HELOC) is a smart move for funding major expenses like renovations, debt consolidation, or large investments. If you’re applying for a $300,000+ HELOC, understanding what lenders require in the pre-approval stage is critical.
Use this comprehensive checklist to prepare and streamline your application process for a smooth and successful outcome.
Why a Pre-Approval Checklist Matters
Before a lender approves a high-balance HELOC, they must ensure you’re financially equipped to manage the credit line. A thorough pre-approval process evaluates your creditworthiness, debt obligations, home equity, and documentation. Having your paperwork and financials organized helps:
- Improve your chances of approval
- Speed up the underwriting process
- Increase negotiation power
- Help you shop smarter for competitive rates
Pre-Approval Checklist for $300K+ HELOC Applications
Here are the key items you’ll need to prepare:
1. Strong Credit Profile
- Minimum Credit Score: Aim for 700+ for high-limit HELOCs
- Credit History: Clean payment record, low credit utilization, no recent delinquencies
2. Home Equity Assessment
- Loan-to-Value (LTV) Ratio: Most lenders allow a maximum of 80–85% LTV
- Recent Appraisal: You may need a formal home appraisal to confirm value
- Current Mortgage Balance: Needed to calculate available equity
3. Income Verification
- Pay Stubs (last 30 days)
- W-2 Forms (last 2 years)
- Tax Returns (last 2 years) if self-employed
- Business Financials if applying as a business owner
4. Debt-to-Income (DTI) Ratio
- Ideally below 43% for better approval chances
- Include all monthly liabilities (mortgage, car loans, student loans, credit cards)
5. Employment and Asset Documentation
- Employment Verification Letter
- Bank Statements (last 60 days)
- Retirement and Investment Accounts for asset strength
6. Property Details
- Proof of Ownership
- Insurance Policy
- Property Tax Documentation
Pro Tips for Success
- Get Prequalified First: It gives you a ballpark figure before formal pre-approval.
- Avoid New Debt: Don’t open new credit accounts before applying.
- Shop Multiple Lenders: Compare rates, fees, and terms.
Frequently Asked Questions (FAQ)
What is the minimum credit score for a $300K HELOC?
Most lenders require a credit score of 700 or higher for high-limit HELOCs.
How long does HELOC pre-approval take?
It typically takes 5–10 business days if all documents are submitted promptly.
Can I use a HELOC on an investment property?
Some lenders allow this, but requirements are stricter and LTV limits are lower.
Ready to Apply?
Don’t wait to tap into your home’s equity.
- Schedule your HELOC consultation with a lending specialist today
- Use our equity calculator to estimate how much you can borrow
- Start your pre-approval application now
Read Next:
Unlock Your Home Equity with Figure
- Approval in 5 minutes. Funding in as few as 5 days
- Borrow $20K-$400K
- Consolidate debt or finance home projects
- Fastest way to turn home equity into cash
- 100% online application
Our advice is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
