Avoid the Traps of Predatory Lenders

Unfortunately, predatory lenders are on the loose, and they will hunt you down. If you are thinking about refinancing or buying a new home, it is important to know how to spot predatory lenders so you don’t get trapped. The National Fair Housing Alliance has provided some very useful tips to help avoid the traps of a predatory lender. Here are a few of their tips:

• The mortgage broker quotes one interest rate but tries to charge you another
• There are unusual and unexpected fees
• The mortgage broker says your credit score requires a higher interest rate
• The loan is tied to a prepayment penalty
• Right before closing, the lender throws unexpected changes at you
• The mortgage broker asks you to sign blank forms

Be sure to check out the video below from Freddie Mac.

You can also get more information at www.questionsprotect.org or by calling 1-866-222-FAIR. If you know of a scammer, report them at 1-888-995-HOPE.