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Top 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 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.
I would like to thank David Brumbaugh 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.
For more info go to :Understanding
Interest Rates
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