If you are thinking seriously about a home equity loan, think first about this. Do you know how to recognize a predatory lender? Do you even know what a predatory lender is?

A predatory lender is a company or individual who is attempting to set you up with a loan that will cause you to lose your house. They rig the loan conditions in the hopes that you will fail to repay the home equity loan. Then they foreclose on you, and you are out in the street.

Here's how to recognize a predatory lender:

* A lender or investor tells you that they are your only chance of getting a loan or owning a home. You should be able to take your time to shop around and compare prices and houses.

* The house you are using for collateral costs a lot more than other homes in the neighborhood, but isn't any bigger or better.

* You are asked to sign a sales contract or loan documents that are blank or that contain information which is not true.

* You are told that the Federal Housing Administration insurance protects you against property defects or loan fraud - it does not.

* The cost or loan terms at closing are not what you agreed to.

* You are told that refinancing can solve your credit or money problems.

* You are told that you can only get a good deal on a home improvement if you finance it with a particular lender.