4 Tips to Make
You More Aware
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.
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