Beware of Shady Home Mortgage Lenders

There are very aggressive home mortgage lenders eager to get your attention by enticing you with special loan terms so that you will do business with them. When you need to think about refinancing your mortgage, it doesn't take much time to discover that there are so many different choices in the types of loans and various mortgage home loan terms that are available that it can become overwhelming.

While most of these offers come from legitimate home mortgage lenders who operate in good faith and above board, there have been increasing reports of "predatory" home mortgage refinance lenders on the prowl through the marketplace. These predatory lenders are not operating with the best interest of the mortgage consumer in mind and they prey on homeowners who are less experienced and knowledgeable.

Mortgage lenders that operate in this unethical way certainly won't be in the marketplace for long. There are many state and federal regulations that govern the mortgage home loan industry. These regulations are designed to protect homeowners and weed out the deceitful.

Unfortunately, the unscrupulous mortgage lenders can do a lot of damage in a short period of time. Often by the time anyone realizes they have been taken, these predators have closed up shop and are nowhere to be found. They have most likely have moved on to strike the unsuspecting in fresh territory. Knowledge is the best defense in this case and with the following suggestions you should be able to steer clear of problems.

One of the first things to avoid is any unsolicited attempt to offer you mortgage refinancing. Do not listen to a telemarketer who tells you how much they can save you if you let them handle your home mortgage refinancing. Throw away the leaflets stuck on your car windshield or door knob. When it comes to dealing with mortgage financiers, it is best if you are the one who is making the first contact.

But, even if you take the initiative and make the first contact, you could still run into predatory lenders. The reality is that the mortgage refinance industry is a multi-billion dollar field, and it attracts crooks looking for easy money from unsuspecting targets. Be very cautious if you notice any of the following red flags.

Home mortgage lenders that rely on slick presentations and pressure tactics are more than likely not to be trusted. Beware of any presentation that feels "canned," over-hyped, or extremely fast-paced. This type of approach is designed to get you "caught up" in a great deal on your mortgage refinancing and to keep you from asking questions.

Also, be very wary of lenders that do not encourage, or outright discourage, your attempts to get your questions answered. Any legitimate mortgage home loan company will be more than happy to take as much time as necessary to be sure you are comfortable with the proceedings and that you have the information you need.

Be very cautious of dealing with home mortgage lenders that you have never heard of before. While new, legitimate companies do enter the market, it is best to deal with known entities when it comes to your finances and your mortgage refinancing. It is always a good idea to check with both the Better Business Bureau and the Attorney General in your state if you are at all unsure about the company.


Watch out for abnormal loan rates and high fees associated with doing your home mortgage refinance. Most lenders charge about the same for interest rates and various fees, so anything out of the ordinary, either too high or too low could be a red flag. Be sure to survey the mortgage market so you know what is normal and customary. Verify through the local newspapers for todays mortgage rates.

Run from the office if you find you are being encouraged to lie when you fill out your refinance loan application. Legitimate lenders would never encourage you to falsify information. Similarly, never leave any space on an application blank. If they do not apply to you, cross out any blank spaces or clearly write "N/A" in the space.

Lastly, be very cautious of home mortgage lenders attempting to rush you into putting your signature on the bottom line before you have been able to fully read and understand all of the terms and conditions. There is simply no reason to be rushed through this process, and if you are, then you should insist that your attorney has a chance to review the paperwork. This will certainly help you to be sure that you don't get ripped off by one of those predatory lenders.

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