Getting a mortgage or any loan is necessary at times – most people don’t have the money to buy a home without a mortgage. Here are some tips to help you when you are applying for a loan. These can apply for any loan, not just a mortgage. Most lenders are going to help you and want to make sure you are getting the best loan for your situation but there are some that may not. If you are in a hurry to get a loan done, you may not always pay attention to the fees or what is going on. Watch out for the following:
No Credit Check – this should not happen with a mortgage but you may see this with car loans or other types of loans – someone guarantees they can finance you or offers you a loan with no credit check – that is the first sign you should walk away.
Being rushed to skip reading and just sign forms – Most loan officers will help you to understand what you are signing. They will explain the forms to you and make sure you know what you are signing. With Covid, many forms are sent to you electronically, that can make it easier for you to take your time to read the documents, but may be harder for you to understand the information. IF you are being pushed to sign forms without reading or understanding them, you may want to walk away. Also if you are sent forms later that are blank, be very cautious. That could lead to fraudulent lending.
Blank Fields and unexpected extra paperwork. Never sign a form that has blank fields. This gives a shady lender a chance to fill in details that you may not agree to. When forms are sent to you for signature online, they should be filled in before you sign them.
Being told to misrepresent yourself in the loan application. Some lenders will try to help you by telling you to “misrepresent” yourself to help you get your loan approved. Increasing your income or adjusting the type of employment to improve your chances of getting an approval – these are are all types of fraud.
High Interest Rates. Last minute or high risk loans can have higher interest rates. Watch out for the loan terms and make sure you are not being overcharged.
Access to your Bank Account for Direct Withdrawals. Some lenders can offer direct withdrawal, if it is convenient for the borrower. Some may even lower your rate if you use automated payments. But watch out for someone asking you to backdate a check or require you to give them access to your bank account to withdraw funds.
Mortgages have so many checks and balances now that it is harder for lenders to get way with predatory lending but it does still happen. The best way to protect yourself from predatory lending is to get a trustworthy loan officer. Ask for referrals, talk to your family and friends and ask who they used. Talk to your realtor and find out who they recommend. As always, if something doesn’t feel right, then walk away or ask lots of questions until you are satisfied.
Leslie Vanderwerf, NMLS ID#335509, Cross Country Mortgage LLC, An Equal Housing Lender, NMLS#3029 – Email – Website
