Home equity loans are considered second mortgages that enable the homeowners to borrow money from their equity when they need cash for urgent matter. For homeowners who are suffering from financial crisis, they still can apply for this type of loan even though their credit scores are low.Let me share with you some practical steps you should take when you need to apply for bad credit home equity loan.Step 1: Calculate your equityIt is important for you to find out whether you have sufficient equity in your property to draw upon. Get ready your latest loan statement before you calculate the equity. Subtract the balance of your loan from the total value of your property. If you are not sure about the value of your property, you are advised to get an appraisal to evaluate your property. The appraisal fee is about $250 to $350.Step 2: Contact the specialized mortgage lendersSince your credit is bad, you are advised not to waste your time looking for regular banks for financial assistance. You are suggested to look for specialized mortgage lenders who offer loans for people with poor credit. If you have no idea who to look for, you can check with the local real property agents for recommendations. At the same time, you can also search through internet to look for reputable online lenders. You can check with the Better Business Bureau to get the list of genuine lenders. On the other hand, some people prefer to look for credit unions for help because the interest rates charged by credit unions are lower.Step 3: Find out more details about the interests and terms of paymentIn general, most of the bad credit home equity loans come with high interests. You are reminded to do thorough comparisons before making your decision. Some lenders offer loans with fixed rate while some lenders offer adjustable interest rates. You need to get the online loan calculator to assist you to calculate your cost and your monthly installment. At the same time, you need to evaluate the terms and conditions set by the lenders. Make sure that you are not taking too much of financial risks.Step 4: Submit your loan applicationAfter shopping around, you need to make your selection carefully. Once you have identified the lender, you can proceed to submit your loan application. The loan approval process will be fast if you furnish the lender with all the necessary documents.The home equity loan is typically a second mortgage. Therefore, the interest rates of this type of loan are higher than the first mortgage. Furthermore, it is also riskier to take up the loan. Any failure in making the repayment may result in loss of property. Hence, you need to consider properly before making up your mind. Unless you really have urgent financial needs, if not, you are advised not to apply for the loan.