Things to Be Aware Of Equity Loans

Do's:
I can't stress this enough: Credit Unions, Credit Unions, Credit Unions! Many are easy to join, free and provide excellent benefits. For example, no closing costs and the interest rate being prime plus 1% or so. That means prime published lending rate plus one interest percent. Some credit unions that do have closing costs will usually pay them. The amount of the closing costs becomes the exact amount of your one, two or three year prepayment penalty. Not too shabby!
Do any visual upgrading that you can before you get your mortgage. You should get a better appraisal. I'm not suggesting you re-roof, but a pretty house usually increases the value.
Do use a home equity loan to pay off high credit card balances or even pay off that car! The interest is, of course, tax deductible, and usually much lower than that Visa you've been paying.
Don'ts:
I would not suggest getting a Home Equity loan if you don't immediately need the money. Even if you don't draw on the balance, it is still an open mortgage and you have possibly paid unnecessary closing costs.
Don't go to the first lender that you heard good things about. A friend recommended a particular lender to me. But by shopping around, I was able to get a no closing cost loan from someone else, which included a better rate.
Find out if the lender will require title insurance. A lot of Home Equity lenders do not require it, which can save you a few hundred bucks. Not that title insurance is a bad thing, but in this case it insures the lender, not you.
Have your loan approved before you sign any work orders with the contractor if you are using the money for home improvement, such as a pool, adding a room, new roof, fencing, etc. Contractors place what's known as a Commencement Notice (Notice to start work), and it messes up your loan. Get the estimates, get the money FIRST, and then find a contractor.