You’ve decided that now is the time to apply for a home equity loan. Your credit rating is good. Your home has increased in value. All that’s left to do is to select a financial institution and apply for the loan.

Start by asking friends and family for the names of lenders they recommend. Next do your research and start to comparison shop. Contact banks, savings and loans, credit unions, mortgage companies and mortgage brokers to evaluate their rates and ask about the incentives they offer.

Ask lenders to explain their loan plans and to detail the loan terms and conditions carefully. Don’t be afraid to ask questions. Confirm what the interest rate is? Ask how much your monthly payment will be? Ask how much interest you will pay over the loan term. Read the fine print looking for surprises such as early termination fees. Look carefully for broker fees that may be quoted as points, origination fees, or interest rate add-on fees.

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Look for other fees including:

application or loan processing fees
origination or underwriting fees
lender or funding fees
appraisal fees
document preparation and recording fees

Negotiate with several lending institutions and don’t be afraid to make lenders and brokers compete for your business. Let them know you are shopping around and interested in securing the best deal.

Ask lenders to meet, or beat, deals and interest rates offered by other lenders. Ask them to lower the points, fees or the interest rate. If an institution offers you an incentive, such as airline miles, accept it and then ask other institutions to match it. Many lenders are in fierce competition for your business and will drastically lower or waive fees and offer incentives to secure your business.

Once you’ve decided which institution to work with, and how much money you would like to borrow, there’s little left to do but apply for the loan. Today, applying for loans is easier than ever before. Most financial institutions allow you to apply online, by phone or in person.

When the loan papers arrive, read them carefully and don’t sign anything that isn’t exactly as you expected it to be. If you do change your mind after signing the papers you have three days to cancel the deal without penalty. If fees have been paid the lender must return them to you, no questions asked.