That's often a smart move. But if you plan to sell, an open HELOC adds one step you'll want to handle early.
Paying It Off Isn't Enough
A HELOC is recorded against your home, just like a mortgage. Before the home can transfer to a buyer, that line has to be paid off and formally closed.
The second part matters. A HELOC with a zero balance is still an open account. If it stays open after closing, a new draw could be made against a home you no longer own, and the lender won't release its lien. So at closing, your title company pays the balance and has the lender close the account, which typically requires your signed request. The lender then records a release showing the line is gone.
What to do Before Closing
- Tell us about it early. Mention any HELOC when you open title, even one with no balance.
- Stop drawing on it. New draws after the payoff is requested can leave a balance at closing. Check for checks, cards, or automatic transfers tied to the line.
- Have your account details ready. We'll need the lender's name and account information to request a payoff.
- Watch for the closure paperwork. Sign and return it promptly so the payoff isn't held up.
An open HELOC rarely stops a sale, but it can slow one down. Contact Access Title when you list, and we'll make sure your credit line is paid, closed, and released on time.