Knowing Predatory Lending Schemes and Unprofessional Lenders

– If it sounds too good to be true, it probably is!

– Get referrals and check the professional licenses with state, county or city regulatory agencies.

– Research local home prices before purchasing

– Shop for a lender and compare costs. Beware of lenders who tell you they are your only chance of getting a loan.

– Beware of “No Money Down” loans, which are gimmicks used to entice consumers to purchase property that they likely can not afford or are not qualified to purchase.

– Beware of Mortgage Professionals who falsely alters and or refuses to disclose to all parties information or terms to qualify the consumer for the loan.

– Don’t let anyone convince you to borrow more money then you can afford to repay.

– Don’t let anyone persuade you into making false statements such as overstating your income, the source of your down payment, or the nature and length of your employment.

– Carefully review all loan documents signed at closing or prior to closing for accuracy, completeness and omissions.

– Be aware of cost or loan terms at closing that are not what you agreed to.

– Overall, beware of unethical mortgage professionals who are willing to “cheat” the system in order to close a deal.

TO report Suspicious lending activities go to the Mortgage Bankers Association’s Web Site at: www.stopmortgagefraud.com

Source: Florida Realtor magazine, Jan 2007

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