How Do You Avoid Predatory Lending Practices?
Knowing how to avoid predatory lending can save you thousands of dollars and a lot of headaches. Educate yourself before it happens to you. When shopping for a loan, ask for referrals from people with good interest rates who are happy with their lenders. Avoid the hard sell, wild promise radio ads or telephone calls. You should also take the following precautions to protect yourself from predatory lending: Bottom of Form Get several loan offers. Never accept the first loan offer. Shop around for two to three mortgage offers. Compare the costs, interest rates, and fees. Ask for a list of fees in writing. Lenders should be willing to explain their costs to you and give you a good faith estimate of the costs before you apply. At least one day before closing, request a HUD-1 statement of your fees. If it’s significantly more than the estimate, ask your lender to remove them. Don’t agree to extra “products” that they try to sell you at the last minute. Don’t make false statements on your ap
