It is safe to say that with any form of business, there are going to be scams and scam artists alike and the mortgage business is no difference. It is not your fault that there are scam artists out there but it is your responsibility to be more informed and protect yourself from these types of predators so that you do not fall victim to the scam.

First you must know exactly what you are looking for in order to identify it when you see it, so what is a predatory type lender. These are the companies that look for the naïve, desperate or both. They take you for a ride of un-kept promises and paint a picture of this great deal and then before you know it, they have not only taken off with your money, but have stolen whatever hope you had for the purchase of your home. There is little repercussion with this because they have covered all of their basis legally and how they take advantage of you is by putting everything that they do not want you to know in fine print because they know most people do not read each and everything they sign and if they do take the time to read it, they word it so that most people have a hard time deciphering what it all means.

The first thing that you should always remember when searching for the perfect lender for your needs is that, typically, the only one who has your best interests at heart is you. Not to say that there are not lenders out there that are good, reputable lenders but they are in the business of making money and that is the bottom line.

The best place to start is by looking for places that have a reputation that surpasses any short comings and also, look for a lender that has been in business for many years. The more you investigate a lenders history, the more you will discover whether or not you feel as though you can trust them.

Lastly, just make sure that before you sign anything, you completely are aware of every aspect of what the loan entails and if you do not feel comfortable ask questions. A lender worth their weight is going to be able to answer your question honestly and to your satisfaction. If they give you the run around, run away, literally. Do not argue, do not keep probing because they have been taught the fine art of manipulation and swindling and they actually take internal classes on how to weasel their way through just about any question that is thrown at them.

Avoiding Predatory Lenders in Mortgage Finance

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