Refinancing a mortgage loan can save you money; provided you are not taken advantage of by a dirty mortgage lender. To avoid losing money due to dirty mortgage lender scams be on the lookout for these warning signs.
Avoid Mortgage Lenders That Delay Disclosure
Shopping for a mortgage on the Internet is a great way to avoid dirty mortgage lenders. You can easily compare rates, fees, and closing costs from a variety of lenders online. Disclosure is an important aspect of choosing a mortgage lender.
If the mortgage lender refuses to fully disclose all aspects of the mortgage, or delays providing you this information they may be hiding something from you. Mortgage lenders are required by law to disclose all aspects of fees, interest rates, and closing costs.
Dirty mortgage lenders often scam homeowners by withholding information about the lock period they are guaranteeing your interest rate. The mortgage lender only guarantees the interest for a period of time called the “lock period.” This lock period is intended to give you time to close on the mortgage and keep your guaranteed interest rate. By withholding the duration of the lock period the dirty mortgage lender is hoping you will not have time to close on the loan before the lock period runs out.
This will give the lender the opportunity to raise the mortgage interest rate before you close.
Never Sign Blank Documents
If your mortgage lender or broker asks you to sign incomplete documents, this should raise a warning flag. By signing blank documents the lender or broker can fill in anything they like, and you have already agreed to it. Blank or incomplete mortgage documents are a sure sign that you are dealing with a dirty broker or mortgage lender. If you sign blank documents you are asking to be taken advantage of.
Pushy Sales Tactics
If your mortgage broker or lender is pushing you with pressure sales, find a new lender. If you feel the lender is trying to sell you with slick sales tactics you may be agreeing to something that is not in your best interest; you could even lose your home.
To learn more about avoiding dirty mortgage lenders and brokers register for our free mortgage guidebook: “Five Things You Need to Know before Refinancing Your Mortgage.”