10 Ways to Avoid Loan Fraud
by: David E. Brumbaugh
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.
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.
not sign a sales contract or loan documents that are blank or that contain information
which is not true.
certain that the costs and loan terms at closing are what you originally agreed
not be talked into lying about lie about your income, expenses, or cash available
for downpayments in order to get a loan.
out for higher-risk loans such as balloon loans, interest only payments, and steep
careful about disclosing things like your need of cash due to medical, unemployment
or debt problems. You are very vulnerable in these cases.
strip your home's equity by refinancing again and again when there is no benefit
of false appraisals.
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.
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.
Brumbaugh is the owner and operator of EZandFree.com.
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.
Copyright 2004 David E. Brumbaugh. All rights reserved.