Snuffing The American Dream
Tips For Getting A Mortgage Loan And To Avoid Becoming A Victim Of Predatory Lending
- Obtain a copy of your credit report and score before applying for a loan or mortgage. If your credit is less than perfect, clean up your credit before buying a home. If necessary, consult Consumer Credit Counseling Services.
- Get references. Check with the local Better Business Bureau before doing business with a lender or mortgage broker.
- Shop around for the best loan and do your homework. Then check with at least three lenders and compare rates. Look at the annual percentage rate (APR), fees, points and closing costs associated with the loan.
- Do not do business with unsolicited lenders. If the lender called you or came to your door uninvited, do not agree to anything.
- Take your time. Read every document thoroughly and review with an attorney.
- Do not be pressured into signing for a loan you cannot afford. Do not respond to tactics of “if you don’t sign now, you are going to miss out on the best deal possible.” You have a legal right to cancel in writing within three business days of signing lean documents unless the loan is to initially purchase your home. Also, you do not have to sign if you go to closing and there are fees or charges you did not expect. Walk out!
- If you are thinking about consolidating your debts into a home equity loan, talk to a local non-profit housing or consumer credit counseling agency first.
- If credit life or disability insurance fees are listed, ask if they are required and if not ask to have them removed.
- Fill in all blank spaces. Do not sign a document until you have completed every space.
- Do not do business with lenders that tell you to falsify information on loan applications.
To learn more, visit www.ag.state.oh.us.
– Tagged from the website of Attorney General Marc Dann