Avoid Predatory Lending!

Some lenders prey on home loan borrowers. Be aware of their tactics so you can avoid them.

1) Predatory Lenders charge extraordinarily high loan origination fees, or "points." If they're trying to charge you more than two points for a sub-prime mortgage or more than one point for a conventional mortgage, get a second opinion from another (reputable) lender.

2) Predatory Lenders try to force you into insurance or other add-on products in order to secure the loan.

3) Predatory Lenders might ask you to make a false statement on your loan documents, such as inflating your actual income or stating you have more cash reserves than you actually do.

4) Predatory Lenders might try to convince you to refinance again and again when it isn't in your best interest. Have a good reason to refinance, and if you have an uneasy feeling, ask your friends and relatives for referrals to lenders you can trust.

5) Predatory Lenders sometimes attempt to lend you more money than you can afford. Don't sign up for a loan if you feel you won't be able to afford it. Check around for alternatives.

6) Predatory Lenders often charge minorities more than they'd charge someone else.

7) Predatory Lenders might help sell properties for more than they're worth using bogus appraisals.

8) Predatory Lenders sometimes have you sign paperwork that is blank and not filled in.

9) Predatory Lenders will often tell you that they're your only hope and that without them you wouldn't be able to get a home loan or refinance.

An educated borrower is a happy borrower!

If you have any questions or concerns about predatory lending, please email me at mortgagesloans@suite101.com.

Read about What NOT To Do When Applying For A Home Loan! Click here: What NOT To Do

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