In recent years, home equity loans have become increasingly popular, as they allow homeowners to access a portion of the equity they have built up in their homes. But what exactly is a home equity loan and, crucially, what do you need to get one?

A home equity loan is a type of secured loan that uses your home as collateral. This means that if you don’t make your loan repayments on time, the lender can take possession of your home. In exchange for this security, lenders offer more attractive terms and attractive interest rates on home equity loans than unsecured debt like credit cards.

When it comes to applying for a home equity loan, there are several factors to consider:

Credit Score: Generally, you need to have a good credit score in order to be eligible for a home equity loan. While other types of secured loans may not require a credit check, a home equity loan will. As such, it’s important that you maintain a good credit score before applying.

Income: You will need to show lenders that you have a reliable source of income in order to repay the loan. Depending on the lender, you may also need to provide proof of income