Is Your Subprime Mortgage Lender A Predatory Lender

Is Your Subprime Mortgage Lender A Predatory Lender 1

Is Your Subprime Mortgage Lender a​ Predatory Lender
Subprime lenders offer financing for people with low credit scores who don’t qualify for a​ conventional loan .​
Subprime financing can be offered through traditional mortgage lenders like banks,​ credit unions,​ or​ mortgage lenders .​
There are also specialized lenders who only deal with subprime mortgages.
Predatory lenders charge high fees,​ write loans in​ vague terms,​ and structure payments so they can foreclose on​ property .​
Predatory lenders take advantage of​ people who do not know their rights in​ the​ lending process.
Signs Of a​ Good Subprime Lender
Good subprime lenders only charge slightly higher rates than conventional lenders .​
They will also fully disclose their rates and terms so you​ can make an​ informed choice .​
Good lenders follow all the​ same practices as​ a​ conventional lender – charging reasonable fees,​ answering all your questions,​ and making reasonable terms on​ prepayment.
Signs Of a​ Predatory Lender
Avoid lenders who charge high closing costs,​ excessive late fees,​ or​ large prepayment penalties .​
Such lenders are more interested in​ making large amounts of​ money than offering a​ service .​
Also watch out for lenders who try to​ lend more than your home’s value,​ forged documents,​ or​ refuse to​ disclose rates and terms.
Strategies to​ Find the​ Right Lender
Comparison shopping is​ the​ best way to​ find the​ right lender .​
Not only will you​ find the​ lowest rates,​ but you​ can be comfortable with your mortgage lender.
Make sure you​ look at​ all the​ closing costs associated with the​ loan .​
Legitimate lenders charge a​ number of​ fees,​ including origination,​ application,​ attorney,​ and other fees .​
Through comparison shopping,​ you​ will quickly become familiar with them .​
However,​ if​ you​ see a​ list of​ unfamiliar items,​ make sure the​ lender isn’t trying to​ take advantage of​ you​ .​
You should only pay fees for actual services given.
Keep checking your paperwork,​ even after you​ close the​ loan .​
Be on​ the​ look out for terms that weren’t disclosed prior to​ signing loan documents .​
According to​ federal law,​ you​ have three days after the​ loan’s closing to​ walk away .​
The lender may keep part of​ your application fee,​ but you​ get the​ rest of​ your cash back.

Is Your Subprime Mortgage Lender A Predatory Lender

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