How to Avoid Predatory Lending When Buying Home

1. DON’T BE AFRAID OF ASKING A LOT OF QUESTIONS!! So what you don’t understand the terminology or process. They’re the experts. Ask away and tell them to make it simple. This is a mutual relationship. They need you as much as you need them. They’re making money off you. Make sure you get clarity before you sign & commit on such a large purchase.

2. Shop multiple lenders! Yes lenders are just like stores. They have sales, deals and different interest rates!! Interest rates help you with a lower monthly mortgage.

3. Ask your for recommendations. Your realtor will give you recommended lenders. But also ask your friends and family who are current homeowners.

4. Speak to your closing attorney. A lot of buyers don’t know the closing attorney represents the lender not you! But they are there to make sure you understand what you’re signing on the day of closing.  You’ll be talking to the precloser in their office while submitting various documents to help facilitate your closing. But feel free to pay an extra fee to meet with the closing attorney so you can get a better understanding of the closing disclosure prior to closing or if they can do it complimentary. Realtors are not lawyers and can’t legally advise  you on certain things specially when it comes to loans.

5. Get the big name banks out your head. Each loan officer operates their business like a franchise. Just because they are attached to a large banking name doesn’t mean they won’t milk you. Go by their character not the name.

6. Most important! READ THE FINE PRINT!!! AGAIN READ the fine print!!
Some loans penalize you if you pay your mortgage off faster.

7. Attend a home buying seminar either online or with an experienced realtor. HUD has a great one that’s $75 online. Some lenders offer credit if you take this class to receive 100% financing. I’ll also be throwing one in the February so be on the look out.