Top 10 Ways to Avoid Loan Fraud

Every year, misinformed homebuyers, often first-time purchasers or seniors, go victims of predatory lending or loan fraud. Below you'll happen the top 10 ways to avoid becoming a victim yourself.

1. Take your clip and store around. You should be able to compare terms and houses. If a lender or broker states you they are your lone opportunity to get a loan or owning a home, don't make business with them.

2. Bash not subscribe a sales contract or loan written documents that are clean or that incorporate information which is not true.

3. Be certain that the costs and loan terms at shutting are what you originally agreed to.

4. Bash not be talked into lying about prevarication about your income, expenses, or cash available for downpayments in order to get a loan.

5. Watch out for higher-risk loans such as as balloon loans, interest only payments, and steep pre-payment penalties.

6. Be careful about disclosing things like your need of cash owed to medical, unemployment or debt problems. You are very vulnerable in these cases.

7. Don't deprive your home's equity by refinancing again and again when there is no benefit to you.

8. Beware of false appraisals.

9. Bash not allow anyone convert you to borrow more than money than you cognize you can afford to repay. If you get behind on your payments, you set on the line losing your house and all of the money you put into your property.

10. Get respective quotes from multiple brokers or lenders so you cognize you're being charged a just interest rate based on your credit history, not your race or national origin.