Applying for HELOC During Mortgage Approval

[Victor Quesada]

I have a question concerning taking out a home equity loan or a HELOC while in the mortgage process. Would either of those affect our approval? Which one would have the least negative impact when it comes to the approval process?

Our current home has over $100,000 worth of equity. We would take out a portion of that to fund the down payment on a new house and pay for repairs on the new house. We would retain ownership of our current home, turning it into a rental property. Our current home is already a Two Family with the second unit rented to long term tenants.