5. How long is process? A typical home equity loan, should not take more than a month on average. Ask your lender how long process will take from initial application to receipt of funds. This can be particularly critical if you are needed to do repairs on your home, such as purchasing a new water heater.

6. Is staff knowledgeable? Never underestimate power of a good customer service representative. Ask loan officer and others in office various questions that you have. They should be knowledgeable on loan process, and be able to guide you through process.

7. Early payment penalty? If you won lottery or got a big raise, would you be able to pay your loan off early? Many people forget to ask this question when choosing a lender, but it can save you thousands of dollars. So, make sure that if you choose to sell your home before it is paid off, you will be covered.

Use your common sense when choosing a home equity loan bank. Research company just as you would with any major purchase. Don't be afraid to ask questions, and to try another lender if you don't get answers that you desire. It is your home and your money on line, so do your homework!