You've heard the stories..... Loan terms change at the last minute. You only find out at the closing table. Did you know that you can get up and walk away from the table?!?!?! YES, you can!!!
Signs of Predatory Lending:
~ Pressured into borrowing more than you want.... consolidating bills unnecessarily.
~ Getting technically confusing answers to your questions.
~ Did your lender offer you more than one option?!?!
~ Do you get an uneasy feeling when the lender explains the rates and fees?
~ Being pressured into a 'special' loan program before the opportunity goes away.
Remember, you have options..... MANY options. Get a competitive quote. Don't stop asking questions until you FULLY understand the answers. And never sign a document that wasn't filled out completely.
Above are some signs that you may be falling victim to a Predatory Lender. Go with your gut feeling and scramble out of there if you are uncomfortable. Not only do you have options... but you also have resources. If you don't fully understand some forms or ates andd fees.... seek help. Ask your CPA, Accountant, Realtor, Friend/Co-worker. But don't get suckered into a loan that you do not fully understand.
Learn more about Predatory Lending here => http://www.dontborrowtrouble.com/
You are quite possibly making decisions about the single most important investment you will make in your lifetime. Buyer Beware!!!!
Tom Burris
DallasLoanGuy.com
Dallas, TX
I didn't know about that website, thanks for mentioning it...
I usually question the loans when my buyers tell me what their GFE said. I always know something is up when the LO gets irritated with my asking and doesn't really have an answer as to why they're getting 9% on a first and 14% on a second when the buyer says their scores are over 680. I used to work with a lender who would just says, "Donna, we've gone over this. That is what my rate sheet said today." Yeah, BS! I don't work with him anymore.
Donna.... Sometime that is all they can get. But you are correct, the lender MUST be able to explain themselves.
Don, It amazes me the number of people who will sign the docs. They need to understand that 'Walking out of the closing' is indeed an option.
Thanks Nattalie
Tom,
Great post....great advice. Hopefully the consumers that visit the Rain (actually all of us) will gain/benefit from all that is shared here. Keep up the good work.
I just spoke to someone trying to get into a consolidation loan... two credit card bills. She felt she could pay off faster with the consolidation loan!
The two minimum payments were just over $200/mo... the consolidation loan was almost $300... if she can't pay $200, why can she pay $300?
Thank you for the comment David
A lot of folks look at debt consolidaion differently.
Some advise you to NEVER roll unsecured debt into a secured financial instrument. I agree that this advice has merit, but if you plan on paying your bills, then where is the problem.
Some people look at nothing but the interest rate charged and some look at the total pmt. What one SHOULD look at is the 2 scenarios side by side and decide which is right for them.
David, you assumed that the borrower couldn't afford the higher payment. Unless you left that part out.
Maybe the borrower found that they could drastically cut their interest rates?!?!?!
Hard to tell what this borrower is thinking.
But for sure.... the borrower has had it put into their head that they could save some money somehow. It is OUR JOB to find out if they are making a wise choice and advise them accordingly.