Where dreams come home - casonestateapartments.com
  • Home
  • Real Estate
  • Building House
  • Buy & Sell
  • Investing
  • Mortgage
  • Marketing
    • Moving
    • Realtor
Where dreams come home - casonestateapartments.com
  • Home
  • Real Estate
  • Building House
  • Buy & Sell
  • Investing
  • Mortgage
  • Marketing
    • Moving
    • Realtor
Real Estate,

6 Red Flags That Tells You You’ve Found A Predatory Lender

by Nick petrovApril 8, 2019no comment
0
Shares
Share on FacebookShare on Twitter
Predatory Lender

We all dream of owning a house, but not everyone is financially capable of buying their own house. Thankfully, mortgage loan programs nowadays make home-purchase a lot more affordable. You can now buy your dream home – provided you qualify for a home loan.

The thing is, not all lenders are the same. While they have different rates, terms and conditions, some are what we can call Predatory Lenders. Such lenders mislead potential homebuyers into signing into an agreement with unfair, deceptive and abusive mortgage terms.

Whether you’re applying for FHA Loans, VA Mortgages or Conventional Loans Grand Prairie, it pays to learn how to spot a reputable mortgage lender from a predatory lender. Keep your eyes open for the following red flags that tell you your mortgage lender is part of predatory lending.

Table of Contents

  • They Encourage Splurging On Your House.
  • Your Lender Didn’t Provide A Good Faith Estimate.
  • They Rush You In Signing Paperwork.
  • They Switched Up the Loan Terms At Closing.
  • They Encourage Lying On Your Mortgage Application.
  • They Have Prepayment Penalties.

They Encourage Splurging On Your House.

During pre-approval, you’ll find out how much you can afford. However, some lenders will encourage you to borrow more than your means, saying you can afford a bigger loan. Beware of such lenders who will pressure you to borrow an amount that is way beyond your comfort zone.

Your Lender Didn’t Provide A Good Faith Estimate.

When you apply for a home loan, your lender is to provide you with a Good Faith Estimate. This document will explain all the fees that come with the mortgage. If your lender didn’t give you any, you wouldn’t get to understand all the costs you’re responsible for paying.

Good Read: The Basics of a Good Faith, or Loan, Estimate

They Rush You In Signing Paperwork.

A mortgage deal is a legal process which involves legal documents that you and your lender need to sign. If your lender convinces you that there is no need to review the mortgage documents since you already talked about the terms, this can mean they are planning to trick you. You have the right to review the terms and conditions at your convenience. A good mortgage lender won’t take that right away from you and will welcome your legal representative for inspection.

They Switched Up the Loan Terms At Closing.

Some lenders will entice you with low-interest fees, long mortgage terms, and small monthly mortgages. However, when closing comes, and you’re about to sign the agreement, you’ll find out after reading the document that they changed some of the terms or even posted rates higher than the promised rate.

They Encourage Lying On Your Mortgage Application.

While most lenders are strict when it comes to verifying your financial documents, a predatory mortgage lender will tell you that homebuyers lie on their application. This is against the law – not to mention can cause you financial burden in the long run if you did apply and get approved for a loan you can’t truly afford.

They Have Prepayment Penalties.

Some lenders will impose a penalty fee if you do wish to repay them off early. This is what we call Prepayment Penalty. This can last for several years and can even make you pay thousands of dollars to pay off the loan early. You will end up having to pay an unnecessary fee even if you intend to finish your payments earlier than the term agreed.

Previous

A Guide to Different Types of Commercial Flooring

March 27, 2019
Next

3 Benefits To Hiring a Professional Plumbing Contractor In The Case Of An Emergency.

May 4, 2019

Leave a Reply Cancel reply

You must be logged in to post a comment.

Related posts

serviced apartment
Real Estate,

Why stay in a serviced apartment when you move from one house to another?

by Nick petrovAugust 14, 2019no comment
Buy Ugly House
Real Estate,

Benefits of Selling To We Buy Ugly House

by Nick petrovJuly 12, 2019no comment
The Contact Information For A Locksmith
Real Estate,

Always Carry The Contact Information For A Locksmith

by Nick petrovMay 15, 2019no comment
Professional Plumbing Contractor
Real Estate,

3 Benefits To Hiring a Professional Plumbing Contractor In The Case Of An Emergency.

by Nick petrovMay 4, 2019no comment

Find Us on Facebook

Investing

  • How to Invest in Australian Real Estate

    How to Invest in Australian Real Estate

    February 20, 2018
  • Investing in New Property – What You Need to Know

    Investing in New Property – What You Need to Know

    February 19, 2018
  • Investing in Oklahoma Real Estate

    Investing in Oklahoma Real Estate

    February 18, 2018

Moving

  • Are You Getting Ready to Move House

    Are You Getting Ready to Move House

    February 24, 2018
  • Contact Us

© 2019 - casonestateapartments.com