SolveYourProblem
Home Loan & Home Mortgage Article Series
How
To Avoid a Crooked Mortgage Company
Everyone wants to buy their own home and the
most convenient way to do this in a “rush, rush world” like
today, is by applying for a mortgage loan. The mortgage loan
business is a big one. There are hundreds if not thousands
of them trying to lure you in, but you have to beware and watch
out for crooked mortgage companies. These crooked companies
are out there and won’t care if your loose your home, your
savings or even if you go bankrupt. They especially like to
prey on the first time home buyer. These companies are looking
out for themselves not you, so when you start your hunt for
a mortgage make sure you don’t fall into their trap, no matter
how seductive their deals may sound. Here are a few tips to
help you point out a crooked and fraudulent mortgage company.
1.
Be aware if the lender doesn’t give you a good faith estimate of what the closing cost will be. Under The Real Estates Settlement
Act they must provide you with this information within three
days once you have applied for the loan. An honest lender will
give this to you without a problem as they have nothing to
hide. Some of the really good lenders will even give you a
good faith estimate on your pre–qualifying information. Also
watch out for any company that won’t give you information on
any of the costs up front, such as interest and other fees.
2.
Beware if the lender says it is ok for you to lie about
any information, especially about your income on a mortgage
loan to increase your chances of approval. Any sort of lying
on any loan form is classified as fraud and is a criminal act.
Besides if a lender does encourage you to do such a thing,
use your common sense, if they give you the leeway to do it,
then they will probably have no problem committing fraudulent
acts upon you.
3.
Beware of interest rates that are amazingly low or incredibly
high. Low interest rates can be very tempting, especially when
they beat everyone else by two or three percent. You may think
that this will save you money, but in the long run it will
only cost you more because most loans with a low interest rate
like these tend to increase significantly throughout the time
line of the loan. People with a less than perfect credit rating
usually fall needlessly victim to high interest rates that
are usually two or three percent higher than everyone else.
There are many places online that offer to check interest rates
against your credit and can give you an accurate estimate of
how much you should be paying.
4.
Be aware if you feel pressured into applying for a mortgage
loan that you don’t understand, can’t financially afford or
if you are told that you are only going to get the loan through
that certain company. If you do feel unsure of anything with
a loan, ask them to explain it to you in detail or go to someone
else who you can trust. You may want to speak with a lawyer
and ask them to go through the loan with you. If you are being
pressured to go with a certain company for a loan, then don’t
do it. If they can offer you a loan then so too will other
companies and without all of the pressure.
When seeking a mortgage loan, make sure that the contract
does not differ from the original contract. Companies that
ask for more signers, credit insurance, or prepayment penalty
fees are probably looking for ways to make money off of you
and don’t have your best interest in mind. In this case, you
should take your business else where.
These are just some of the things you should look out for
when mortgage loan hunting so you are not caught in a trap
by a corrupt company. If you are ever in doubt, don’t use the
company, as there are many more to choose from that will be
happy to take your business and will offer you assistance with
anything you are unsure of.
# # # # #
SolveYourProblem.com : 2007
> Home
> Mortgage
& Loan Articles: Main Page
|
