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:
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Make sure you can afford to pay this loan.
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Shop around. Find out what other lenders are charging and compare for the best offer.
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Get pre-loan counseling.
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Hire a real estate attorney.
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Read all the documents before signing them.
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Have all costs and services explained to you.
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Ask if you qualify for a less expensive loan before accepting a high-fee mortgage or loan.
Don’ts:
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Don’t allow yourself to be pressured into any deal.
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Don’t believe any salesperson who says you have no other options.
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Don’t respond to hard-sell tactics.
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Don’t sign documents with black spaces.
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Don’t agree to inflate your income or provide other false information to qualify for a loan.
HPD's Owner Services Program
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