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How to Avoid Predatory Lenders of Bad Credit Mortgages
Author David Schneider | May 23,2007
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Paul knew that he didn't have perfect credit, but the repairs on his home couldn't wait another year. The value of homes in his neighborhood had increased 10 percent since Paul bought his home 3 years ago. In addition to the 10 percent equity earned from appreciation, Paul had initially put down $25,000 on his home, and he had made principal payments to the mortgage company of $5,000. If he could find a loan product that he qualified for, Paul had $46,000 in equity that he could cash out of his home. Thinking that he would never find a lender that would work with him, Paul jumped at the first offer that he received. Unfortunately, Paul selected a predatory lender who charged him thousands of dollars in closing and lender fees, excessively high interest rates and gave him extremely bad loan terms. When you shop for a bad credit mortgage, you need to research your options carefully. Many predatory lenders out there will take advantage of you if they can. You can avoid this problem by learning how to avoid predatory lenders of bad credit mortgages.
How to Avoid Predatory Lenders of Bad Credit Mortgages: Tip 1
The first way that you can avoid predatory lenders is to learn how to spot one. Most predatory lenders try to entice people with less than perfect credit by offering low lender fees. However, once you are invested in the loan process they spring many hidden costs on you that increase the cost of your mortgage.
How to Avoid Predatory Lenders of Bad Credit Mortgages: Tip 2
Another way to avoid predatory lenders is to read the fine print before you sign anything. Before you sign any paperwork, make sure that you read through all of the paperwork that the company offers you, especially the Truth in Lending form. The Truth in Lending form should list all of the fees and costs that they will associate with your loan. Compare this list of fees to other lenders' fees. If your lender has many fees that are higher than other lenders, or if there are suspicious items on this list of fees, find another lender.
How to Avoid Predatory Lenders of Bad Credit Mortgages: Tip 3
The third way to avoid predatory lenders is to use a mortgage referral service like QuoteMatch.com. QuoteMatch.com only works with reputable lenders. They take the mortgage shopper's information and use it to match homebuyers with lenders in their database.
Get Your Mortgage Quotes Today
If you are ready to buy your own home, then you need to find reputable lenders to work with. QuoteMatch.com can help you avoid predatory lenders who prey on bad credit mortgage shoppers, and they can help you access several mortgage quotes with one easy step. Don't wait another minute, go to QuoteMatch.com today. |
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