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Freddie Mac offers great advice and information to home buyers and refinancing homeowners on how to avoid the pitfalls of predatory lenders. Freddie Mac's "Don't Borrow Trouble®" campaign exposes eleven common borrowing mistakes. Below are the top five tips. To learn more, click here
- Say NO to "easy money." If a solicitation is really interesting, get it in writing!
- Shop around. Borrowers should talk to several lenders to find the best loan for which they qualify.
- Understand the loan terms. Borrowers should compare loan terms from different lenders.
- Find out about prepayment penalties. Borrowers should know if the loan offered to them has a prepayment penalty.
- Make sure documents are correct. Borrowers should never falsify information or sign documents that they know to be false.
Years ago, the State of New Jersey enacted an anti-predatory law, known as the New Jersey Homeowners Security Act to protect consumers. For more of what New Jersey consumers should know about predatory lending go to the Department of Banking and Finance.
Great post. Lenders tend to assume that borrowers understand the terms. Buyers alwasys seem to get stars in there eyes and forget to pay attention to reason