Bad Loans? Yes, they are out there, and you need to be aware of some simple facts moving forward. Most of us might know about warning signs when it comes to our health but when you’re being taken advantage of by a lender you might not know the signs and what to look for?
Let’s talk about some Red Flags that we need to be aware of when choosing a lender. We also need to be aware of different programs that are better suited for you in order to find the perfect loan. Do you know what program to choose? You might now realize that depending on the type of loan and bad advice given from your lender, you could lose your home and your home equity to go along with it, so why not be prepared? Not all loans are equal as there’s a difference between loans based on the equity of the home and loans with the ability to repay them. If the loan sounds amazing or unusual, then you might want to take a few minutes out of your day and investigate why?
Below are some facts you should know about when interviewing lenders for your future loan:
• You want to avoid lenders that want you to fabricate you loan application with information that’s not describing your current and actual situation. Remember that one “White Lie” can lead to additional “White Lies” and eventually to fraud and other significant penalties, so always be aware.
• If you’re asked to borrow more money than is necessary, be leery as this could be a way for a lender to make more money on you!
• There are some lenders that might push you towards loans with payments that you can’t afford and will say anything for you to move forward with the loan. It’s important to know what you need and can afford, not what you wish you can afford.
• If a lender doesn’t provide you with a “Good Faith Estimate” and required loan disclosures while advising you that it’s not important to read the documents at hand, ask yourself why? You have the APR, credit charges, points and broker fees that you should be aware of and cross check with the “Good Faith Estimate” that you should have received prior to signing.
• Advise you about what program and rates you will receive and at the closing table have an entirely different loan, points paid to lender and or APR.
• Don’t ever sign any lender forms and leave the rest of the form blank for your lender to fill out at a different date and time.
• Mentions that you aren’t privy to the copies of documents that you’ve signed or documents that you will be signing. You should be able to review any and all documents related to your loan.
Finding the right lender is as essential as finding the perfect home with your Real Estate Agent! As I always say, “make sure they’re in business for a long time and have an excellent rating with the BBB.” If you happen to be looking for a reputable lender, then I have one suggestion I’d like to share with all of you. Below is a lender that I’ve personally have had the pleasure of working with for the past 15 years of proven success. Bills’ high morals, professionalism and knowledge about the many options and programs will help you find the right loan; Contact Bill Morin with VIP Mortgage today at 602-622-7610. I hope this article finds you well and has helped you be more aware and knowledgeable about the home buying process!
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