Buying A Home After Bankruptcy Beware Of Shady Subprime Mortgage Lenders

Buying A Home After Bankruptcy Beware Of Shady Subprime Mortgage Lenders



Buying a​ Home After Bankruptcy - Beware Of Shady Subprime Mortgage Lenders
If you​ have a​ recent bankruptcy and are looking to​ buy a​ home,​ be careful of​ unethical or​ predatory lenders .​
Whether you​ are looking online or​ offline for a​ mortgage lender,​ it​ is​ becoming increasingly more common that subprime lenders are taking advantage of​ bad credit borrowers.
Many lenders will take advantage of​ borrowers with recent bankruptcies and bad credit because they know that the​ borrowers loan options are limited .​
Sometimes these lenders will charge excessively high fees,​ extensive pre-payment penalties on​ the​ home or​ ask for a​ fee upfront to​ process the​ loan.
Here are some tips on​ applying for a​ mortgage loan after a​ bankruptcy:
Beware of​ the​ Lender Asking For a​ Fee Upfront - Anytime you​ are applying for a​ mortgage loan,​ the​ only fee you​ should ever have to​ pay is​ the​ application fee which covers the​ cost of​ the​ lender pulling your credit application .​
Some lending scams involve asking for a​ processing fee of​ hundreds to​ thousands to​ process the​ loan.
Compare Loan Offers - If you​ can compare from 3-4 mortgage application quotes then you​ will know what to​ expect the​ current interest rate for subprime mortgage loans to​ be .​
If you​ accept the​ first mortgage loan offer you​ have,​ you​ may be paying a​ much higher interest rate than what is​ reasonable for your credit history.
Get Closing Costs in​ Writing - Brokers know that if​ a​ borrower has bad credit,​ they are most likely going to​ be more concerned about getting a​ reasonable interest rate and just getting approved than making sure they get normal closing costs .​
This is​ where many lenders will ding the​ borrower with credit problems .​
They will sometimes charge excessive closing cost fees .​
Get the​ list of​ closing costs in​ writing ahead of​ time and then do research online to​ make sure that the​ costs are reasonable .​
If the​ costs are not,​ go back to​ the​ lender and tell them that the​ closing costs are too high and you​ will not go through with the​ loan until they are lowered to​ be what is​ normal .​
The broker will usually comply,​ because they don't want the​ loan to​ fall through.




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