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10 Ways to Avoid Loan Fraud
by David E. Brumbaugh
Every year, misinformed homebuyers, often first-time purchasers
or seniors, become victims of predatory lending or loan fraud. Below
you'll find the top ten ways to avoid becoming a victim yourself.
1.Take your time and shop around. You should be able to compare
prices and houses. If a lender or broker tells you they are your
only chance to get a loan or owning a home, don't do business with
them.
2.Do not sign a sales contract or loan documents that are blank
or that contain information which is not true.
3.Be certain that the costs and loan terms at closing are what you
originally agreed to.
4.Do not be talked into lying about (or choose to lie) about your
income, expenses, or cash available for downpayments in order to
get a loan.
5.Watch out for higher-risk loans such as balloon loans, interest
only payments, and steep pre-payment penalties.
6.Be careful about disclosing things like your need of cash due
to medical, unemployment or debt problems. You are very vulnerable
in these cases.
7.Don't strip your home's equity by refinancing again and again
when there is no benefit to you.
8.Beware of false appraisals.
9.Do not let anyone convince you to borrow more money than you know
you can afford to repay. If you get behind on your payments, you
risk losing your house and all of the money you put into your property.
10.Get several quotes from multiple brokers or lenders so you know
you're being charged a fair interest rate based on your credit history,
not your race or national origin.
David Brumbaugh is the owner and operator of EZandFree.com. EZandFree.com
provides consumers with online tools for easily obtaining free competitive
Mortgage and Loan Quotes. It also serves as a mechanism by which
Mortgage Brokers can obtain legitimate qualified leads from people
who need their services.
Terms of Use
Copyright 2004 David E. Brumbaugh. All rights reserved. This article
may be published in your newsletter or web site. It must be reproduced
in its entirety including the biography and web address.
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