Think through your reasons for wanting a home equity loan. Some reasons are better than others with refurbishing, upgrading and repairing the home some of the best, while paying for a vacation or using the money as an investment or general living fund some of the worst.

If you do decide to apply for a home equity loan ask people you know for recommendations. Your friends, relatives, co-workers and even your current lender may be able to make suggestions if they do not handle home equity loans themselves.

When you decide to obtain the loan think of any questions you may have. Keep a written list of these questions as you are researching and learning about loans. Using these questions to compare lenders will be an effective evaluation tool.