Beware of Predatory Lenders!
June 30th, 2008 Categories: Buyer's Corner, First Time Buyers, Trends
Over the last year lending practices have been placed under the microscope and lending programs that existed even 6 months ago have changed drastically. I have had several closings fall apart because the financing did not come through. Also I have had several clients ask me at closing why their interest rates had changed from what they were expecting, and of course their lender was not even there to explain the difference. If the interest rates or closing costs your lender are giving you seem too good to be true then they probably are. Make sure you’re working with a lender you trust so you do not run into problems. Also if you are purchasing a property and you’re financing falls through the day of closing as a buyer you’re in default and will lose your earnest money! This can be a costly expense and one that can be easily avoided if you make sure and use a lender you can trust to get the job done. Make sure that your lender is putting together the best loan for your purchase not one that makes them the most amount of money. If a lender is pushing you into a loan program that just does not fit what you are looking for you might want to shop around for another lender. Also make sure to keep talking to your lender throughout the sales process, ask lots of questions. If your lender seems to be avoiding talking to you about your loan are you sure you are working with the right person? A home is the biggest purchase that most of us make in our lifetime, do your homework and find a lender who will really work for you because it is your money and your home and you don’t want to lose either of them.
