When you are looking for a lender for a mortgage or other loan be careful to evaluate each lender and what they have to offer. Do not become a victim of loan fraud.
1. Shop around for a loan and see what various lenders have to offer. By shopping around you can make sure you find the best interest rates available to you.
2. Never accept a loan from a lender that tells you that no other bank or lending institution will extend you credit or grant you a loan. If they tell you this, they are most likely trying to trick you into accepting a loan from them so that they can charge you higher rates.
3. Do not be talked into taking a loan for more money than you can afford. If you are unable to keep up with your payments, you can lose your home and harm your credit. You know how much you can afford.
5. Never let the lender know of any special circumstances as to why you may be very desperate for a loan. If you do this, they may take advantage of you.
6. When applying for a loan always be honest about your employment, your income and any assets. Remember that lenders make money off of you if they lend you money. Therefore some unethical lenders may encourage you to stretch the truth on applications to be sure you will be approved for a loan. [Read more…]