 TITLE: What Is a Home Equity Line of Credit (HELOC)? CONTENT: How to Qualify for a HELOC\n--------------------------\nWhen you apply for a HELOC, lenders will conduct a property appraisal to determine the value of your home so they can establish how much equity you have. They will also perform a title search and conduct a credit check. Having substantial equity in your home isn't all it takes to qualify, however. HELOC lenders typically want you to have a credit score of at least 680; 700 is is better, and some may require a score of 720 or more. Your credit score and the amount of equity you have in your home are key factors in determining your loan terms. If your credit score is on the low end, having a lot of equity can balance it out. Learn more about what credit score you need to get a HELOC.\nTo assess your ability to repay the line of credit, lenders will also consider your debt-to-income ratio, or DTI (that is, the percentage of your total income that goes to pay outstanding debt) and how long you've been employed. They'll also be on the lookout for any past financial problems, such as bankruptcies or foreclosures, in your credit history.\nBefore applying for a HELOC, it's a good idea to get a free credit report and check your credit score to see where you stand. If necessary, take steps to improve your credit score before you apply; this can boost your chances of qualifying for a HELOC. END