predatory lenders

Buyers Guide:	re-lakeland.com
Mortgage Loans: How to avoid falling pray to a predatory lender
<< back	by jeffrey nolan

There are a zillion lenders out there.... just hoping you'll call.

Their slick and they know the lingo. You hardly stand a chance even if you think your pretty sharp. Because, they've heard it all and know exactly what to say. They have your hot buttons down patt & have a well rehearsed scripted come back to anything and everything you could possibly say - as they've heard it a thousands times already.

it's your...
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...money at risk!!

So how can one sort out the honest lenders from the predatory type ones who are looking to gouge you with outrageous fees?

Well it's not easy on your own. The best thing to do is shop with only recommend lenders. Get names from people you know who have used a lender in the past and have been happy with their fees and service.

If you have a Realtor agent, ask them who they recommend as all agents have several lenders who provide them with the most efficient service and the lowest possible fees.

If you don't have an agent yet, call or email me and I'll refer you some really good honest people who will treat you right.

Don't "key" your search on strictly the Lowest Quoted interest rate. This is the number one trick the predators use to suck you in. Rates change daily, even hourly and any "quote" doesn't mean beans unless it's "locked" in. They'll have very believable reasons (later - after you've applied) why you don't qualify for the telephone "suck-you-in" rate that sounded great on the phone!

There's more to a mortgage loan than just the rate. Any lender can give you a fabulous rate by simply adjusting their margins through "points" or other fees like origination fees, doc prep & underwriting fees, "administration" and a host of "other" fees.

Primarily understand; money's money, it's a commodity just like furniture or groceries. Lenders buy it - mark it up - and resell it to you in the form a mortgage loan. The wholesale cost they get it for is pretty much the same. The difference is in the mark-up just like any other retail store.

So resist the urge to "bite" on the lowest rate quote, seek some referrals from people you know and compare the bottom line cost - after all fees - on any loan you may be considering.

Also...
Read these articles to gain more knowledge on how to avoid the bad guys lurking in the yellow pages and newspaper ads.


	Consumers Lose $9.1 Billion To Predatory Lenders ------------------------------------------------ According to testimony presented on Capitol Hill, U.S. consumers pay $9.1 billion in excess fees and charges to predatory lenders. "Equity stripping" in such forms as high fees, needless insurance, and prepayment penalties are among the devices used to raise borrower costs, reports Lew Sichelman. for Full Story: Click Here ------------------------------------------------

	How to Spot Predatory Lenders by: Julie Garton-Good (consumer r.e.-advocate) ------------------------------------------------ There's been a lot in the news lately about predatory lenders. But how easy are they to spot and what tactics do they typically use to capture and take advantage of unwitting mortgage consumers? for Full Story: Click Here ------------------------------------------------