HELOC Application Process FAQs

Applying for any loan may affect your credit score because it requires a “hard” credit pull, which is an inquiry made by a lender to approve a credit application.

No. BECU does not charge origination fees¹ for HELOCs, including application fees.

You don't have to be a member to apply, but the primary applicant will need to become a member² before the loan is funded.

You can apply for a HELOC at any BECU location or by calling 844-BECULOANS. Existing BECU members can also apply in Online Banking.

The HELOC application process can be broken down into three stages: application processing, document signing and HELOC account funding.

1. Application processing: During this stage, a processor reviews your application and orders property and flood reports. They may also order a property condition report and an appraisal. Your processor will contact you to address any outstanding items after they review the reports.
2. Document signing: We will contact you to set up an appointment when your HELOC documents are ready to be signed.
3. HELOC funding: If the subject property is your primary residence, your HELOC will fund when the right of rescission has expired after three business days. If the subject property is non-owner occupied, the HELOC will fund once we receive the signed loan documents and it clears for funding.

This is a legal right provided by the Truth in Lending Act that allows borrowers to cancel a primary residence loan request without repercussion within three business days of signing loan documents. This right applies to certain home financing types including HELOCs and home loans.

We typically process HELOC applications within 21 business days. Certain factors, like unexpected liens or ownership discrepancies revealed in the property report, may delay the process. Promptly providing us any requested documents will help expedite your application.

A processor will order a property report, which shows the current ownership of the subject property and any liens against the property. They will also request a flood report to determine if your property is in a flood zone.

Other reports may be required, including a report on the condition of your home's exterior. If this is required, you may see an appraiser drive by your property to take photos.

Your processor will work with you to ensure you have proper flood insurance coverage.

Exterior appraisals only assess the outside of your home and do not require an appointment. The appraiser will take photos of the home's exterior and research your property using county records and other online data sources. If you live in a gated community, the appraiser will call you directly to arrange their visit.

Interior appraisals require an appointment for the appraiser to view the interior of your home. The appraiser will take photos of the inside and outside of your home as well as any auxiliary structures on the property. They will check that your water heater is properly strapped, and that carbon monoxide and fire detection is in place as applicable. The appraiser will need access to all rooms in the home to complete their report.

Manufactured home appraisals require an appointment for the appraiser to view and photograph the interior and exterior of your home. They also need photos of the data plate and HUD tags. The data plate provides important home information and is usually in a closet or cabinet. HUD tags are metal tags located on the outside of each section of the home confirming it meets HUD's manufactured home construction and safety standards.

The appraiser will finish their research and submit the report to our appraisal management company. Your processor will send you a copy of the report when it is available, usually around seven business days after the appraisal date.

We will request an updated insurance binder showing BECU added as loss payee/mortgagee with the HELOC loan number included. An insurance binder is a document issued by an authorized insurance representative that serves as proof of insurance.

You will need to provide a copy of your condo's master insurance policy. If you don't have a current term copy you can usually obtain a copy through your Homeowner's Association (HOA). The master insurance policy should include dwelling coverage replacement as well as “walls in coverage,” which covers interior improvements.

You will need to obtain this coverage, often referred to as an HO-6 condo owner's policy, before we can process your HELOC application.

We will mail disclosures for the non-borrowing owner to the primary applicant's mailing address.

Yes, non-borrowing owners need to sign some of the closing documents.

The non-borrowing owner does not have an obligation to pay the loan, but they need to agree to the home being used as collateral for the HELOC.

The BECU HELOC lien is required to be in the first or second lien position. Additional liens on the property may need to be paid off or subordinated to ensure the HELOC lien maintains a lien position within guidelines.

A deed of reconveyance is a legal document that transfers the title of a property from the lender back to the borrower once the mortgage has been fully paid off.

If you have fully paid off and closed the loan associated with the lien showing on your title, you should contact the lender to ask about the status of the deed of reconveyance.

Court judgments filed against a person may become a lien on any real estate owned by that person in that county.

We cannot proceed with a HELOC application when there is a judgment lien in a superior position.

Judgments belonging to someone with a similar name to yours sometimes show on a title report. Please reach out to your processor for next steps.

To have the judgment removed from the title, you need to record a Satisfaction of Judgment with the appropriate county office.

Yes. A judgment can be paid with HELOC funds. An escrow agent will be required to help close the loan to ensure the completion and record of the Satisfaction of Judgment. This will extend the application processing time.

BECU covers the escrow fee as a benefit of membership.

You need to provide the decree of legal separation or divorce and any additional documents or exhibits the decree refers to. For example, if the decree refers to a separation agreement or an exhibit that includes the separation of property, you will need to provide those documents.

We need proof that the additional owner no longer has an interest in the property, including any monetary judgments and awards ordered by the court.

If they were not awarded ownership in the property, they no longer have the right to sign.

You need to provide proof of payment. For a monetary judgment, this means providing a filed Satisfaction of Judgment from the court. If it is a monetary award, you should include a settlement statement from a previous refinance, or a notarized letter from the spouse/ex-spouse confirming payment.

The monetary judgment or award can be paid with HELOC funds. An escrow agent will be required to help close the loan, which will extend the application processing time. The escrow agent will:

• Verify the payoff amount.
• Ensure your spouse/ex-spouse receives their payoff directly from the HELOC funds.
• Collect any additional paperwork required from the spouse/ex-spouse, such as a Satisfaction of Judgment or Reconveyance of a Divorce Lien, as applicable.

We do not need to review your full trust agreement. However, you will need to provide a Certificate of Trust for review.

All borrowers are required to be a trustee.

The spouse of a trustee is not required to sign any documents.

Trustee names must be listed in the property ownership records. Trusts can only own real estate through trustees (e.g., John Doe, as trustee of the John Doe Trust).

You cannot use power of attorney to sign closing documents for a trustee.

You need to establish a trust membership account. Residents of Washington state can establish membership at the time of the loan signing. If you are outside Washington state, you have to establish membership before you sign.

All borrowing trustees and non-borrowing trustees who signed loan documents will have access.

You need to reapply for the HELOC after probate is completed. At that time you will need to provide the following:

• Declaration of Completion of Probate
• Will (if applicable)
• Certified death certificate

Please visit Handling the Finances of a Deceased Person for more guidance.

BECU lending guidelines may require you to pay off or pay down other debts before we can approve you for a HELOC.

Your processor will confirm whether BECU is paying the lender directly or if you need to pick up the payoff check from the BECU location you specify. It is important to continue to make your regular payments until you confirm the other lender paid or closed the loan.

You should discuss your options with your processor.