Lenders tend to deal with borrowers who have low credit score more if they want to get a home equity loan. The reason is that your home is used as collateral, so you are not so risky as a borrower. If you decide to obtain a home equity loan, you should follow the guidelines:
- Revise your credit report for possible mistakes and determine the score you have.
- Gather all financial documents proving the amount of equity you have ( learn what home equity is) and information about your income, etc. More equity you have, less interest rate you can find.
- Apply for a loan. Compare the propositions from different lenders.
- Make sure to choose the most beneficial loan. Consider not only the interest rate but also the other terms.
Remember that obtaining a home equity loan is a responsible step, as you may lose your house in case of missed payments or other terms violation. So, take your financial situation into consideration.