What Are Your 2-Year Financial Goals?
How can EasyKnock help you reach your financial goals in as little as 2 years?
When you think about the next couple of years, what do you picture? Are you retired, living in your dream home, living debt-free, or maybe even have a new business venture underway? Whatever your goals, you need access to cash in order to achieve it.
What happens, however, when all the traditional options are non-starters that just leave you feeling hopeless and frustrated? Let’s say you’ve found yourself under what feels like a mountain of debt and you have decided that your main objective is to pay it off over the next few years, but loans have been all but impossible to access. That's where EasyKnock comes in.
We help homeowners like you avoid the hassle and stress of traditional lenders by offering a solution that converts your home equity into cash quickly and easily without the need for moving or repaying loans. But what does that process look like and how do we help you achieve these goals? Let’s take a closer look at a typical EasyKnock journey to paying off debts and even repurchasing your home.
The First Six Months
During the first 6 months as an EasyKnock customer, you can expect to have cash in hand from the transaction. Now you can focus on paying off credit cards and other high-interest debts. By reducing these balances, you are reducing your monthly expenses and are allowing yourself to start saving more in the future.
Once the high-interest debts have been paid off, you can start to shift your focus to paying down other lower interest debts as well. Some debt is okay, but by paying these off as well, you are further lowering your monthly payment obligations and saving more in the long run.
What Happens After Paying Off Debts
So you’ve now lowered or completely eliminated your debts. Congrats! Now it’s time to start thinking about your next steps after EasyKnock. If you’re hoping to repurchase your home, now you should begin setting aside your remaining cash and developing a budget that ensures you will have the 3% minimum you’ll need to repurchase your home. For this part of the process, you can use a traditional lender and mortgage.
Now that debt is no longer a hindrance to your finances, you can even work on boosting your credit score. Typically, lowering debt has a positive impact on your credit score already. But there are other things you can do to raise it even more, such as making payments on time and keeping your credit utilization low. To learn more about these, check out our tips on understanding your credit score.
The goal should be to maintain at least a 620 FICO score, as this is the number that will open most lending products up for your use. Anything lower can run you a higher risk of being rejected. However, there are some options out there that will allow you to have as low as a 580. But the higher your score, the more opportunities will be available to you.
Convert your Home Equity to Cash
The Home Stretch
By now, you’ve paid off your debt, boosted your credit score, and are now preparing to repurchase your home. These are no easy feats and you’ll feel incredibly proud of yourself and your achievements. So how do you finally close the loop and officially regain ownership of your home and begin reaping the rewards of your hard work?
When you’re ready, EasyKnock can connect you with a lender that is familiar with our solutions and can best assist you, or you can choose the lender you want to work with on your own. Either way, your next step is getting pre-approved.
Next is the underwriting process. The lender will begin due diligence and verification while a third party completes an appraisal on the property and an attorney does the title work.
Once all the paperwork is completed and everything has been cleared, a closing date is set and your home is yours again. You get back the title and the feeling of accomplishment from having reached your goals while staying in the home you love.
With EasyKnock, you aren’t just a number. We treat each customer individually and base their journey around their specific needs. No two plans are the same because no two customers are the same. But what is consistent is that we will see you through to the end of your journey and be there all along the way to help however we can. EasyKnock gives you the support, time, and flexibility that no other solution can provide.
Amanda HoeyContent Marketing Manager
Amanda Hoey, Content Marketing Manager for EasyKnock, has applied her experience in public relations and content development to help produce educational and informative content for the financial and real estate industry. She is committed to bringing awareness and knowledge to homeowners about EasyKnock’s home equity loan alternative.