6 surprising reasons your home equity loan could be denied this October

Lenders may deny your application for reasons you didn't see coming, even if you have plenty of equity to tap into. Rabia Elif Akso/Getty Images

For many homeowners, the equity they've built in their homes is one of the most powerful financial tools they have. Thanks, in large part, to home values rapidly climbing over the last few years, the average homeowner now has access to over $300,000 in home equity , with many homeowners having even more to tap into. And, as other types of borrowing rates remain elevated, home equity rates remain low , which means that opting for a home equity loan is an increasingly attractive option for covering large expenses without selling your home.

But while plenty of homeowners have equity to borrow against, the reality is that not every ho