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How To Avoid Loan FraudTitle: Top 10 Ways to Avoid Loan Fraud Author: David E. Brumbaugh Article:Every year, misinformed homebuyers, often first-time purchasersor seniors, become victims of predatory lending or loan fraud.Below you'll find the top ten ways to avoid becoming a victimyourself. 1.Take your time and shop around. You should be able to compareprices and houses. If a lender or broker tells you they are youronly chance to get financing or owning a home, don't do businesswith them. 2.Do not sign a sales contract or financing documents thatare blank or that contain information which is not true. 3.Be certain that the costs and financing terms at closing are what youoriginally agreed to. 4.Do not be talked into lying about your income, expenses, or cash available for downpaymentsin order to get a financing. 5.Watch out for higher-risk financing such as balloon loans, interest only payments, and steep pre-payment penalties. 6.Be careful about disclosing things like your needof cash due to medical, unemployment or debt problems. You arevery vulnerable in these cases. 7.Don't strip your home's equityby refinancing again and again when there is no benefit to you. 8.Beware of false appraisals. 9.Do not let anyone convince youto borrow more money than you know you can afford to repay. Ifyou get behind on your payments, you risk losing your house andall of the money you put into your property. 10.Get several quotes from multiple brokers or lenders so you knowyou're being charged a fair interest rate based on your credit history, not your race or national origin. About the author:David Brumbaugh is the owner and operator of EZandFree.com.EZandFree.com provides consumers with online tools for easilyobtaining free competitive Mortgage and Loan Quotes. It alsoserves as a mechanism by which Mortgage Brokers can obtainlegitimate qualified leads from people who need their services. |