| Shopping for a mortgage loan is no different than | | | | mortgage loans. If the charges a lender quotes you |
| shopping for any other product; the rule of "buyers | | | | seem excessively high, ask for an explanation of |
| beware" applies to mortgage loans just like it applies to | | | | those fees. If the lender is not forthcoming with an |
| purchasing televisions or automobiles. The majority of | | | | explanation or will not reduce the fees in line with other |
| mortgage lenders operate honest businesses, and | | | | lenders, you should seek your mortgage loan |
| many genuinely care about helping people; however, | | | | somewhere else. |
| there are dishonest mortgage lenders that try and | | | | There is another way predatory mortgage lenders |
| take advantage of their borrowers. Here are tips to | | | | take advantage of borrowers; bad lenders structure |
| help you avoid these predatory mortgage lenders and | | | | their loan terms to make it difficult for homeowners to |
| find the best mortgage loan. | | | | keep up with their payments. They do this by requiring |
| Predatory mortgage lenders practice a variety of | | | | large balloon payments, periodic refinancing, or |
| unfair lending practices. These practices include | | | | purchasing additional insurance as a condition of |
| charging excessive fees, structuring loan terms to | | | | qualifying for the loan. The lender does this hoping you |
| promote foreclosure, and often provide poor customer | | | | will default on the mortgage and they can seize your |
| service. An important part of taking out a mortgage is | | | | home. |
| comparison shopping from a variety of lenders and | | | | One trait nearly every predatory lender has in |
| brokers so you will know what fair interest rates, | | | | common is poor customer service. These lenders use |
| terms, lender fees, and closing costs are. | | | | pressure sales tactics, are unresponsive to your |
| Everyone that takes out a mortgage has to pay | | | | questions, and do not process your information in a |
| lender fees and closing costs. Predatory lenders inflate | | | | timely manner. You can learn more about your |
| their fees and closing costs, often disguising them in | | | | mortgage options, including how to avoid bad lenders |
| the fine print of your loan contract. This is especially | | | | and common mistakes by registering for a free |
| true of some lenders that specialize in bad credit | | | | mortgage guidebook. |