Tips to Avoid Loan Fraud

by Vinodh Kumar - Date: 2007-01-07 - Word Count: 314 Share This!

Very frequently, misguided & misinformed home buyers, often first-time purchasers or seniors, become victims of predatory (false) lending or loan fraud. Below you'll find certain tips which seem to be overlooked by many in order to avoid becoming a victim yourself of this fraudulent proceedings.

1. Take your time and research around. You should be able to compare prices and houses.

2. If a lender or broker tells you they are your only chance to get a loan or owning a home, he is lying. Don't go on to do business with them.

3. Do not sign a sales contract or loan documents that are blank or that contain information which are false.

4. Read through the proposal presented by the lender or broker. And often get a check on it by your legal adviser or mentor.

5. Be certain that the costs and loan terms at closing are what you originally decided upon.

4. Do not be talked into lying about (or choose to lie) your income, expenses, or cash available for down payments in order to get a loan.

5. Look out for higher-risk loans such as balloon loans, interest only payments, and steep pre-payment penalties.

6. Be careful about disclosing things like your need of cash due to medical, unemployment or debt problems. You are very vulnerable in these cases.

7. Don't strip your home's equity by financing again and again when there is no benefit to you.

8. Beware of false appraisals.

9. Do not let anyone convince you to borrow more money than you know you can afford to repay. If you get behind on your payments, you stand a chance of losing your house and all of the money you put into your property.

10. Get several quotes from multiple brokers or lenders so you know you're being charged a fair interest rate based on your credit history, not your race or national origin.

For more details and information, kindly visit: www.a-zloan.blogspot.com

Related Tags: money, auto, loan, mortgage, equity, home, personal, dollars

Your Article Search Directory : Find in Articles

© The article above is copyrighted by it's author. You're allowed to distribute this work according to the Creative Commons Attribution-NoDerivs license.

Recent articles in this category:

Payday Installment Loans: Ideal Funds That Supports Your Impending Needs by Robert Deveau
Any impending monetary crisis will be tough to deal with, if you are not having adequate funds. Neve
Educational Loans -helps To Secure Bright Future by Kelly Meliss
Education is said to be the most important thing in ones life. It not only helps to improve the stan
One Hour Payday Loans No Faxing - Fastest Option Of Acquiring Money by ElizabethS
Nowadays, loans have become a common thing among the UK people as needs are rising while the salary
Tenant Loans - Instant Monetary Support For Non Homeowners by Antonio Vargas
Are you looking for an unsecured financial help that does not demand security to place against the r
Payday Loans No Faxing - No Verification And Delay by gregghall
So many times, the approval of the loan gets delayed due to the lengthy paperwork and documentation.
Bad Credit Car Loans -helps You Finance A Car by Monikakim
Are you in need of a new car? Here bad credit car loans can offer you finance as you need. Perhaps y
Logbook Loans - Friendly Deal For Car Owners by gregghall
Everyone knows that logbook is a paper issued by driver and vehicle licensing agency. This important
Same Day Loans For People On Benefits - Quick Money For Instant Financial Hold by BenGannon
Urgent and unpredictable demands might arise at times when you are not financially prepared. To deal
3 Month Payday Loans - Feel Free With Longer Repayment Option by ElizabethS
Are you looking for the loan that can give you small cash, but for longer duration? Are you worried
Loans For Bankrupt People - Look Forward For Financial Stability by BenGannon
Financial acronym or injury and inability for reimbursement to the concerned are known as insolvency

Most viewed articles in this category:

Unsecured Personal Loans - Loan for the Common Man by Eric
Loans can broadly be divided into two types - unsecured loans and secured loans. Secured personal lo
High Risk Unsecured Personal Loans at Nominal Interest Rate by Kara Wade
Today, unsecured loans gave grabbed the market as more and more people are opting for it. The loan m
Personal Loans-Don't Suppress Your Financial Needs by Joanne Clive
Personal loans can be segregated into a secured and an unsecured loan option. If you are a homeowner
Take the Loan; Show No Reason by A. Wilsoon
If you are in need of a loan and want to utilise it for any purpose without showing the reason to th
No Compromise With Your Pleasure, Have Your Own Car by Joanne Clive
On a fine morning, you get up to see the sun shining brightly in the sky, leaving the world bathed i
Subsidized And Unsubsidized Student Loans! by Kate Ross
These loans carry different loan terms and different requirements. According to the student situatio
Interest Rate: The Key Factor on Car Loans! by Mary Wise
There are such wide variations in APR between lenders that you can end up overpaying on your car loa
Fight Against Tight Financial Situation With Personal Loans UK by A. Wilsoon
It is always better to prepare yourself for unforeseen or unexpected expenses. If you are not born w
Advantages And Disadvantages Of Lack Of Security On Loans! by Sarah Dinkins
The unsecured nature of these loans attracts tenants but homeowners as well. However, in order to de
Unsecured Personal Loans-A Loan Everybody Is Eligible To Procure by Joanne Clive
Unsecured personal loans cater to urgent day-to-day financial requirements, and have become very pop