Don’t make yourself one of the many victims of predatory lending. If you decided to get a home loan, better know something
about it. You might get tempted in some low-interest home loan offers that looked so good to be true. Ask further information and check the credibility of the
lender before applying and getting the loan. Look for better deals, calculate and seek professional help. Some lending fraud offers you low home loan interest rates, and their intentions of foreclosing the house early is very well hidden.
In order for you not to get “trapped” in a home loan, here some steps and guidelines in avoiding home loan fraud:
1.) Give yourself enough time to look and compare prices of the houses. Picture what you really wanted and narrow the choices by eliminating.
avoid sticking with one lender or broker. Lenders who claim and try hard to convince you that they are what you need to own a house are absolutely fraud. If you notice that they don’t answer your direct question, and jump into another topic right away without further explaining drop it. Look for a new lender.
2.) If you are asked to sign some forms as part of the requirements, read carefully and understand what those forms are for. Don’t sign right away and check all the pages to make sure that you don’t get into some unwanted contracts. Check also if the information are all true, and if something is not clear, ask for further information. If the lender gives you the one-line, unsatisfactory answers, or refuses to give more information, look for another.
3.) Make sure that the prices are right and you can afford it if you finally get to choose the one that suits you. Before closing the deal, repeat what you heard from the lender and if that were the things you agree upon since the beginning matched, you go for it. But if not, look for another lender.
4.) If you are asked to tamper some of your own documents and claims to get the loan, it’s fraud. Do not say also having ready cash for the down payment if you happened to have savings to appear more persuasive and hard to convince.
5.) Clear whatever you did not understand. Before signing a deal, think about the decision you are going to make, analyze the pros and the cons and if have any doubts or bad feeling about it, don’t go for it. Calculate once again and see if the advantages are really in your side. If you are not sure yet, tell the broker that you will think about it and they bug you out and looked like not willing to let you go until they closed the deal, do not be intimidate. State firmly your side why you are thinking twice.
6.) If the property costs higher than it look like, do not sign the deal, as well properties with overly low rates. Low home loan interest rates maybe a way to get you sign the deal, and you will just realize after you sign the contract you are ought to pay more than you thought or penalties are high.
7.) If you really needed cash for an emergency, do not apply and sign a home loan yet. Think if you can pay back, or the need of cash is a real emergency, because lenders may use the opportunity to trap you in kind loan you do not want.
8.) Please, please avoid refinancing multiple times because your house will lose its value.
9.) Do not borrow money unless you needed to. Make sure that you only borrow what you need and what you can afford to pay back. If you made the wrong decision by borrowing more than you can afford to pay, the chances of losing your property will increase.
10.) Make sure that you are getting the right appraisal and the interest rates are fair, or if possible, it favors your paying schedule. Do not hesitate to inform the lender that you are thinking twice about it because the interest rates seemed not fair for you and they get higher benefits. If the lender lowers the interest rates, do not go for it. If they simply insist that that’s the policy, it’s a sign of a good home loan, because they honor the policies and regulations of the company