In order to be able to obtain a home equity loan you need to know how lenders actually evaluate borrowers like you. For instance, you have to be conscious of your credit record because it is basic for lenders to get your credit record. They would look at missed payments, defaults and other faults in your credit history. Knowing this you should get hold of your credit score before you apply for a loan. Check it for accuracy as lenders check the score for eligibility.   Lenders also look at your capacity to pay. That is why you need to have a stable source of income. Aside from that you should also not have that much of outstanding debts. That's because lenders look at your debt income ratio. It follows that the lesser debt you have that the lower your debt income ratio will be. And the lower your debt income ratio is the better you will look in the eyes of lenders.   Of course, you usually need collateral to secure the loan with. But then the house itself acts as collateral. In addition to that though lenders would look at whether you have liquids assets.   All of these things will play an important part in creating a picture of you as a borrower. And in the end, each criterion would play a crucial part on the approval of your loan.