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.
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.
Do not sign a sales contract or loan documents
that are blank or that contain information
which is not true.
Be certain that the costs and loan terms
at closing are what you originally agreed
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.
Watch out for higher-risk loans such as
balloon loans, interest only payments,
and steep pre-payment penalties.
Be careful about disclosing things like
your need of cash due to medical, unemployment
or debt problems. You are very vulnerable
in these cases.
Don't strip your home's equity by refinancing
again and again when there is no benefit
Beware of false appraisals.
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.
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.
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