WELCOME AN EXPERIENCE YOU LL

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2 AN EXPERIENCE YOU LL WELCOME If you re looking for a home equity loan, you ve come to the right place. With Capital One, the process is easy. We work to ensure things run smoothly from beginning to end, and we always keep you informed. It s our goal to provide you with better service, better support and a better lending experience. To that end, this easy-to-follow home equity guide lets you know what you can expect from us and what we ll expect from you.

3 Whether you re looking to make home improvements, consolidate balances or pay for other important expenses, we ve designed a clear, straightforward way to do it. CONSIDER YOUR CHOICES HOME EQUITY LOAN Receive a one-time loan and repay it in fixed monthly A GOOD PLAN IS A GREAT THING Here s an overview of how we can work together to help things run smoothly. A more detailed explanation is included in the how it works insert. payments. Since this is a fixed-rate loan, the interest rate will stay the same throughout the life of the loan. US YOU HOME EQUITY LINE OF CREDIT Access the funds you need through a revolving line of credit and make payments on what you withdraw. Since this is a variable-rate APPLICATION REVIEW Review your application in the next 1-2 days. Gather income and other documents that will be needed to loan, the interest rate is subject to change over time. process your loan. KNOW WHAT HAPPENS NEXT We ll go over your application and conduct a preliminary review. If we decide to COMMITMENT Present you with an initial offer that details rate and loan terms. Give you a full list of Accept your initial offer in person or online. Submit documents required for us to conditionally approve the loan, we ll present you with an offer letter. Once you review documents needed. proceed with your loan. and accept the terms of the offer letter, your Loan Specialist will give you a call to walk you through the process. VERIFICATION Review income documents along with Promptly return any follow-up information appraisal and insurance requested. KEEP THIS GUIDE HANDY The enclosed sheets detail how every step in the process works, what you ll need to keep things running smoothly, how we make our decision and how you can track your CLOSE AND FUND LOAN information. Schedule closing meeting with you. Provide funds within Attend closing meeting to sign contract. Tell us how you want loan s progress online. It s all part of our goal to make the process easier for you. a few days. funds disbursed.

4 HOW IT WORKS The more you know about your loan process, the easier it is to go from one step to the next. This chart details the roles we each play, so there won t be any surprises along the way. STEPS WHAT WE DO WHAT YOU DO 1. BEGIN LOAN PROCESS Work with you to determine the best loan solution for your needs. Once you re ready, your Relationship Banker can assist you with applying for a loan. 2. APPLICATION REVIEW Pull your credit report, review your application, and, in most cases, provide you a decision by the next business day. 3. PRELIMINARY OFFER Present you with an offer that details your loan terms. Once you accept your offer, one of our Loan Specialists will give you a welcome call. Explore loan solutions and apply for the option that works best for you. Provide personal information as requested. Review your Home Equity Guide and set up your account on My Loan Status (MLS) to track your loan application. Accept your offer (through your Relationship Banker or online through MLS). 4. GATHER IMPORTANT DOCUMENTS Review with you the required list of documents needed to proceed with the loan. Gather and submit the required documents in order to proceed with the loan. See the What You ll Need section of this guide. 5. INCOME REVIEW Review income documents submitted to meet qualifications of your loan. Respond with any additional information needed as requested by your Loan Specialist or prompted on MLS. 6. APPRAISAL AND TITLE VERIFICATION Order appraisal and run title search. Review homeowners insurance and flood insurance, if applicable. If interior appraisal is needed, the appraiser will call to finalize a date for the home visit. If the Loan Specialist contacts you, respond promptly with any follow-up information related to title or insurance issues. 7. PREP FOR CLOSING Schedule closing date and location by coordinating with you and any third parties (if applicable). Prepare all loan documents. 8. CLOSING Provide closing kit. Walk through closing checklist with you. Choose the most convenient closing date from the options we provide. Respond promptly to any outstanding items. Attend and sign documents. Pay origination fee and taxes, if applicable. 9. THREE-DAY RESCISSION PERIOD Respond to any of your questions or requests. If you decide not to proceed with the loan, contact your Loan Specialist and submit the rescission letter supplied in your closing kit. 10. FUNDING The bank will make funds available per your instructions. Access or receive funds on the 5th business day from closing. LEND-5420 REV. 07/2014 NMLS ID

5 WHAT YOU LL NEED While we re doing our part, you can do yours. Use this list, and the chart on the other side, to gather the paperwork you ll need. Then upload the requested documents online through MLS, provide them to your Relationship Banker, or fax directly to your Loan Specialist. We ll also be providing you (via MLS and mail) a loan kit with relevant disclosure documents for your signature. If you have any questions along the way, give your Relationship Banker or Loan Specialist a call. ONLY WHEN WE RECEIVE THE FOLLOWING DOCUMENTS CAN WE PROCEED WITH YOUR LOAN. PLEASE NOTE THAT WE MAY NEED ADDITIONAL DOCUMENTS BASED ON YOUR SPECIFIC SITUATION. PROOF OF INCOME: WAGE-EARNER EMPLOYEE MOST RECENT PAY STUB: Please ensure that your pay stub shows at least 30 days of year-to-date income. W-2s: For Home Equity Loans, we need the prior two years of W-2 statements. For Home Equity Lines of Credit, we need only your prior-year W-2 statement. SELF-EMPLOYED INDIVIDUAL AND BUSINESS TAX RETURNS: Prior two years of signed individual and business tax returns, including all schedules and any contingent liabilities. PROFIT/LOSS (P&L) AND BALANCE SHEET STATEMENTS (HOME EQUITY LOAN ONLY): Year-to-date P&L and Balance Sheet statements for your business. A CURRENT MORTGAGE STATEMENT AND PROPERTY TAX BILL Be sure your mortgage statement includes your account number or loan number, and the lender s phone number. If not included on your mortgage statement, we will also need a copy of your prior year s property tax bill. HOMEOWNERS INSURANCE AND FLOOD INSURANCE Include your homeowners insurance declaration statement, indicating the coverage on your home as well as your insurance agent s name and phone number. If you live in a flood zone, please include your flood insurance declarations page. Please note: A separate flood policy is required for each building on your property with a value of $1,000 or more. SIGNED NOTICE OF EXTENSION OF CREDIT (TEXAS RESIDENTS ONLY) Your Relationship Banker or Loan Specialist will provide you a notice of extension of credit form to sign and submit. Please be sure that the notice is signed by all owners and spouses. TO SUBMIT DOCUMENTS LISTED: Online: Sign into MLS to upload documents Fax: PLEASE SEE OTHER SIDE FOR MORE DETAILS, AS WELL AS INFORMATION REGARDING SPECIAL CIRCUMSTANCES.

6 This chart details documents that are in addition to the documents called out on the other side, and apply only to special circumstances. FOR THE COMPLETE LIST OF DOCUMENTS REQUIRED BASED ON YOUR INDIVIDUAL CIRCUMSTANCES, LOG IN TO MLS AND CHECK THE LOAN REQUIREMENTS SECTION, OR GIVE YOUR LOAN SPECIALIST A CALL. REQUIREMENT HOME EQUITY LOAN HOME EQUITY LINE OF CREDIT VERIFICATION OF EMPLOYMENT Written verification for the past 24 months N/A RENTAL PROPERTY INCOME Prior two years of signed personal returns with all schedules; copy of the current lease Prior two years of signed personal returns, if newly acquired lease SOCIAL SECURITY INCOME Social Security Award Letter Social Security Award Letter, bank account statements, or Tax Returns RETIREES Most recent Benefits statement; signed Tax Returns Account statements or most recent Benefits statement ALIMONY PAYMENTS* Divorce decree; proof of receipt of alimony MILITARY INCOME Leave and Earnings statement OTHER LOAN(S) SECURED BY HOME Current statement *You are not required to disclose alimony, child support, or separate maintenance income unless you wish for these to be considered as a basis for repayment. LEND-5420 REV. 07/2014 NMLS ID

7 HOW WE DECIDE A loan is an important step for you and for us. That s why we take the time to consider your application carefully and thoroughly. Keep in mind, all loans are subject to credit approval. And while there are many factors that go into our decision, three pieces of information play a key role in the outcome: 1. YOUR CREDIT HISTORY We ll look at your past loans and credit accounts, and we ll check your credit rating through a reputable credit bureau. Keep in mind, it s important for you to check your credit report at regular intervals to make sure the information is accurate. 2. YOUR CURRENT DEBT OBLIGATIONS AND EXPECTED MONTHLY PAYMENT To determine your ability to repay your loans, we do a couple of things. First, we ll calculate the monthly payments from your proposed home equity loan. Then we ll compare this to your monthly gross income level. We refer to this ratio as the payment-to-income ratio. Example: Jane has a monthly income of $5,000. The monthly payment for her new Capital One Home Equity Loan is $500. Payment-to-income ratio: $500 $5,000 = 10%. We will also add up other monthly debt payments (including credit cards, auto loans, lines of credit, child support, etc.) to the home equity payment, and compare this to your income. We refer to this as the debt-to-income ratio. Example: In addition to the monthly payment for her Capital One Loan, Jane has monthly debt payments that total $1,000. Debt-to-income ratio: ($1,000 + $500) $5,000 = 30%. 3. THE VALUE OF YOUR HOME AND THE EQUITY YOU OWN IN IT It s important to understand how much equity you have in your home in order to determine how much you are eligible to borrow. We ll assess the value of your home using a home appraisal or a home evaluation model. For appraisals, we rely on independent appraisers to assess the fair market value of your home. Appraisers can have no monetary ties or personal relationships with any bank they support. The appraisal or evaluation of your home is then used to calculate a combined loan-to-value ratio. This is the ratio of the total combined amount of the loans secured by your home (including the home equity loan you are applying for) as compared to the amount at which your home has been appraised or valued. Capital One Bank sets a maximum combined loan-to-value ratio on our real estate loans that varies based on type of loan and your geographic location. Example: Bob has a $200,000 mortgage on his home, which is valued at $350,000. He wants to take out a $50,000 home equity loan to remodel his home. Combined loan-to-value ratio: ($200,000 + $50,000) $350,000 = 71%. LEND-5420 REV. 07/2014 NMLS ID

8 HOW TO KEEP INFORMED Banking Investing Retirement Capital One While it helps to know all the steps, knowing exactly where you are in the home equity process will make it an even smoother experience. With MY LOAN STATUS (MLS), our easy-to-use online tool, you can follow the status of your Home Equity Loan application every step of the way. You will be notified via when there are any new messages for you to review on MLS. 1. VISIT YOUR PERSONALIZED MY LOAN STATUS HOMEPAGE If you are a new customer, you will need the Customer Number (CIF) given by your banker after applying. Please make sure to hold on to this number as you may need it at a later time. If you are an existing Capital One 360 customer, you will simply need to log in to your account. Find a bank branch/atm View products for ZIP: Find a bank branch/atm View products for ZIP: Search Credit Cards Credit Cards Banking Loans Investing Business Customer Service Sign In Capital One Home > Home Equity Loans > Home Equity Loans and Lines of Credit Capital One Home > Home Equity Loans > Home Equity Loans and Lines of Credit Capital One Bank Home Equity Loans and Lines of Credit Print Contact Us Access your account Capital One Bank Ready for your new home loan? CAPITAL ONE HOME EQUITY LOANS NOW SERVING Enter your ZIP code below to see Capital One home equity products in your area! Capital One offers home loans in the following states: Ready for your new home loan? North East Mid-Atlantic South & West New York (NY) Delaware (DE) Louisiana (LA) Enter your ZIP code below to see Capital One home equity products in your area! Connecticut (CT) Maryland (MD) Texas (TX) New Jersey (NJ) Virginia (VA) Washington (DC) Capital One offers home loans in the following states: Check out our Home Equity Loans See what s available in your area. North East Mid-Atlantic South & West New York (NY) Delaware (DE) Louisiana (LA) Enter your ZIP code Connecticut (CT) Maryland (MD) Texas (TX) New Jersey (NJ) Virginia (VA) Go Washington (DC) Search Banking Loans Investing Business Home Equity Loans and Lines of Credit Customer Service Sign In Print Contact Us Access your account Access Your Account CAPITAL Mortgage Account ONE HOME - Sign In EQUITY LOANS NOW SERVING Mortgage Application - Check Status Home Equity Account - Sign In Home Equity Application - Check Status Close Banking Investing Retirement Capital One My Accounts Sign In Customer Number/Saver ID (Username) Hide My Typing Remember my Customer Number Saver ID (Username) Forgot your Customer Number/Saver ID Continue (Username)? Products Check out our Home Equity Loans See what s available in your area. 1. Capital Go One, N.A., to NMLS ID Enter your ZIP code and click on the Access your account link 2. Click on Home Equity Application Check Status 3. New customers enter Customer Number (CIF) Go Banking Investing Retirement Capital One Open Account Sign In My Accounts Products Help & More Search Banking Investing Retirement Capital One Capital One, N.A., NMLS ID Sign In Info 2. Image and Phrase 3. Security Questions 4. Finished! My Accounts Products Help & More Open Account Sign In My Accounts Products Help & More Search Enroll To check on your loan status you will need to enroll in our sign in process. Please verify your Social Security Number to start the process. Last 4 digits of your Social Security Number: Continue ABC DEF GHI JKL MNO PQRS TUV WXYZ Create Sign In PIN Create your new Sign In PIN between 6-10 digits in length using the PIN pad below Clear 0 ABC DEF GHI JKL MNO PQRS TUV WXYZ Verify Sign In PIN Verify your PIN using the PIN pad below and then click Continue. Please memorize your entry as it will not be repeated back to you Clear 0 My Accounts estatements My Info Summary My Savings Goals Saver Since August 01, 2012 john.smith@abc.com Loans Account Type Account # Balance Available 20-Year Home Equity Loan Application submitted on 02/20/2013 Applied Applied Applied Check My Loan Status If you re unable to use your mouse, you may also use your keyboard. Submit 4. Enroll to begin the log-in process 5. If you re a new customer, you ll be asked to create a PIN and complete a one-time-only sign-in enrollment process 6. Click on the Check My Loan Status link on the My Accounts page 2. TRACK THE PROGRESS OF YOUR LOAN IN REAL TIME Loan Status Loan Documents Loan Requirements Loan Information Loan Messages FAQs & Contact Your Home Loan documents are now available on the Loan Documents tab. You need to complete and return some of these documents. Remember, the sooner we get them back, the sooner you can close on your new Home Loan. Processing Steps Completed Actions and Information 1 Application Submitted 2 Application Decisioned 3 Documents Sent to You 4 Accepted Loan Offer 5 Documents Received by Us 6 Flood Certification 7 Home Appraisal 8 Title Search 9 Final Loan Approval Your application was received on 2/15/2014. A decision was made regarding your application on 2/15/2014. See above for the decision. Tell us what you thought of the application process. Please review your documents on the Loan Documents tab. You ll need to complete and return some of the documents in the packet. Your Good Faith Estimate is available to review on the Loan Documents tab. Please review it and, if you like what you see, accept your offer on the Loan Information tab. We received all your required documents on 2/15/2014. Thank you! What d you think of the document return process? We will order a flood certification on your home to determine if the property is located in a flood zone. Once the home appraisal is completed and all other steps are checked off, you ll be ready to close on your loan. We ve ordered a title search on your home and we re awaiting results. Once the above steps are completed, your title company will call you to schedule your closing. (Steps continued on reverse side)

9 3. MONITOR THE STATUS OF REQUIRED DOCUMENTS Loan Status Loan Documents Loan Requirements Loan Information Loan Messages FAQs & Contact Here are all the required documents you ll need to provide us in order to close on your loan. Securely upload these documents from the Loan Documents tab, or fax them to Documents Required by Capital One Status Message Provide a signed letter explaining the use of the cash out proceeds from this loan. Action Required Please complete and return document. Provide a signed and dated copy of the Authorization to Release Information form included in your Current Offer Package. Action Required Please complete and return document. Copy of declaration page of the homeowners insurance policy, including annual premium amount and the lender listed as loss payee. Action Required Please complete and return document. Proof of satisfaction and funds used to pay off the following mortgage: Smith, John, ABC Bank, , $155, Action Required Please complete and return document. 4. UPLOAD OUTSTANDING DOCUMENTS Loan Status Loan Documents Loan Requirements Loan Information Loan Messages FAQs & Contact Here you ll find all of the loan documents from Capital One, and all the documents you ve submitted for us to review. Review Loan Requirements tab for a list of all the required documents you ll need to provide, then click the Upload Documents button to securely upload a file, or fax them to Upload Documents Documents From You (0) Documents From Us (3) Click on a document to download it in Adobe PDF format. Document Current Offer Package - 02/19/2014 Current Good Faith Estimate (GFE) - 02/19/2014 Description These documents include everything you need to know about your Home Loan offer. Contains your estimated closing costs which you must review prior to accepting your loan. New Documents That Require Signatures - 02/19/2014 These documents must be reviewed, signed, and returned to us. 5. RECEIVE IMPORTANT MESSAGES REGARDING YOUR LOAN Loan Status Loan Documents Loan Requirements Loan Information Loan Messages FAQs & Contact Here s the place to check out secure messages from us that we don t want to share by general . We ll shoot you an at your regular address to let you know when you have a new message. Subject From Date Sent Appraisal Home Equity Feb 21, :57 AM More Info Needed Home Equity Jan 09, :19 PM Messages will be automatically deleted 90 days from the date they were sent. FAQs What is the Message Center? Is it safe to include personal and account information in a message? How do I download an attachment you ve sent me? 6. ACCESS ANY INFORMATION YOU NEED AT ANY TIME Review loan terms Check loan status View a personalized list of documents needed Confirm uploaded documents Get messages LEND-5420 REV. 07/2014 NMLS ID

10 WHAT ELSE YOU SHOULD KNOW Throughout the process, some questions may arise. Addressing them now could make things go faster and easier. Below are some important things you may want to discuss with your Loan Specialist if they apply to you. ARE THERE ANY ADDITIONAL NAMES ON THE TITLE OF THE PROPERTY? If so, they must be at the closing to sign the security instrument. We will let you know if anyone else needs to be present. DO YOU LIVE IN A FLOOD ZONE? If you live in a flood zone, your house will need flood insurance. Federal regulations require you to insure any structure with two or more outside rigid walls and a fully secured roof that is affixed to a permanent site. Insurance may be required on structures such as storage sheds, RV ports, workshops, etc. HAS YOUR HOME BEEN APPRAISED RECENTLY? Be aware that your home s value may have changed since your last appraisal. HAVE YOU HAD OTHER LIENS AGAINST YOUR HOME? Check with your lender to make sure there aren t any liens on the property listed on the title that need to be closed. HAVE WE REQUESTED TO SUBORDINATE A LIEN AGAINST YOUR HOME? Subordination is a complicated request. Please talk to your Loan Specialist if you have any questions. WILL YOU BE SETTING UP AUTOMATIC PAYMENTS? If you set up automatic payments from a checking or savings account, you may be eligible for a 0.25% discount. Speak to your Relationship Banker or Loan Specialist for details, and to see if you qualify. LEND-5420 REV. 07/2014 NMLS ID

11 Upon approval, your loan or line amount may vary based on your specific situation. Additional fees may be due at closing. Additional terms and restrictions apply. Loans are subject to credit approval. Products and services are offered by Capital One, N.A., NMLS ID , Member FDIC Capital One. All rights reserved. LEND-5420 REV. 07/2014