My HELOC has a zero balance so why does it still need to be closed?

Even with nothing owed, an active HELOC gives you the option to borrow against your home at any time. For that reason, we have to consider the full draw potential in the underwriting process. If we approved you for an HEI based on a zero balance but you later drew a large amount, it could leave you overextended and could affect our lien position on your title.