- 1). Find your free credit bureau report at annualcreditreport.com. Use the site to choose your state from the menu, and then enter your personal information. Print your credit report to view entries that have been made from your creditors. Make sure there are no discrepancies or mistakes on your credit report. If you find an error, contact the reporting agency to complete a claim form.
- 2). Gather documents you will need to apply for a home equity loan. These include such items as a payroll stub, an income statement, employment verification and tax documents. The documents required must be up to date.
- 3). Contact the lender carrying the mortgage on your home to request a home equity loan. The mortgage company already has an appraisal on your home, which will save you money on closing costs. Also, if you make mortgage payments on time, the mortgage company may offer you a better rate on your home equity loan to keep your business.
- 4). Visit a local mortgage broker to receive quotes for a home equity loan. Mortgage brokers contact several lenders who offer rates to compete for your loan. This helps you get a low interest rate for a home equity loan.
- 5). Go to a local bank and request information about a home equity loan. Local banks can offer you a loan even if your credit score is weak and you have difficulty qualifying with other lenders.
- 6). Search online at Bankrate.com for the home equity loan rates in your area. Review the rates by entering your credit rating and location. Contact a lender that provides a low rate for your credit qualification.
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