If you are looking to buy a home, refinance, or obtain a home improvement loan, beware. There are some lenders who will put greed before your needs by charging you higher fees or charging you a higher interest rate than you should have to pay. You could end up with a loan with payments you can’t afford. Many good, smart, and trusting people are being taken advantage of in this way.

Do’s:

• Make sure you can afford to pay this loan.
• Shop around. Find out what other lenders are charging and compare for the best offer.
• Get pre-loan counseling.
• Hire a real estate attorney.
• Read all the documents before signing them.
• Have all costs and services explained to you.
• Ask if you qualify for a less expensive loan before accepting a high-fee mortgage or loan.

Don’ts:

• Don’t allow yourself to be pressured into any deal.
• Don’t believe any salesperson who says you have no other options.
• Don’t respond to hard-sell tactics.
• Don’t sign documents with black spaces.
• Don’t agree to inflate your income or provide other false information to qualify for a loan.

HPD's Owner Services Program (OSP) works with homeowners to prevent foreclosures and predatory lending. The program offers both short-term counseling and more extensive, on-going assistance. To talk to a counselor, call (212) 863-6225.

Press Release: Mayor Bloomberg Announces Innovative Initiative to Combat Predatory Lending And Prevent Mortgage Foreclosures

Program Partners:

Neighborhood Economic Development Advocacy Project (NEDAP)

The Parodneck Foundation

South Brooklyn Legal Services