Six Indicators That You May Have A Bad Loan
There are so many things to think about and to consider while trying to buy a home. At times it may seem a bit overwhelming. However, it’s important to be educated and involved throughout the entire process in order to avoid any potential pitfalls. And that includes the mortgage company that will be financing your loan.
The best way to make sure you’re dealing with a reputable finance company is to get a referral from your Realtor. However, if you choose to search for financing on your own, there are several things that should raise red flags and indicate that you may not be dealing with a reputable mortgage company.
1. If your lender asks you to falsify the information on your application, this is a red flag. Just one little infraction could cause you to be fined or even send you to jail. Additionally, upon discovery of the false information, you could then be required to immediately pay your loan in full.
2. If your lender tries to get you to borrow more money than you really need, this is a red flag. The more money you finance, the bigger commission they get. So don’t let anyone lead you to believe they are helping you by lending you more money – they’re not!
3. If your lender gives you paperwork and tells you that you don’t need to read it, this is a red flag. Additionally, if your lender doesn’t supply you with the required loan disclosures, again, this is another red flag. By law, all lenders are required to supply you with the APR and an itemized list of all closing costs for your loan within three days after you’ve applied.
4. If your lender tells you one thing when you submit your application, then the terms have changed when it comes time to close, this is a red flag. And even if they can explain, you should take some time to review the changes or find someone else to carry your loan.
5. If your lender asks you to sign blank forms, this is a red flag. Never, never sign a blank form! If you find a few blanks on some of the documents, just mark through them and put your initial’s next to that mark.
6. If your lender won’t let you read the closing documents in advance, this is a red flag. Of course you may not be able to get a copy of the pre-filled paperwork in advance. However, you should be allowed to take home and read through the documents you will be signing at the closing. If they won’t allow you to read the standard closing documents, you should find another mortgage company to finance your loan.
If you have some concerns about what constitutes a red flag while trying to find a reputable mortgage company, ask your real estate lawyer for assistance. Financing a home is serious business and if you get this wrong, it could have serious unintended consequences.
Having the right Florida Realtor means having an agent who is committed to helping you with the highest level of expertise in the local market. This commitment level has helped Bold Real Estate Group build a remarkable track record of delivering results.
About the Author: Millie Gil has been a successful Licensed Real Estate agent for over 25 years in Florida. Millie is Vice President of Bold Real Estate Group in Stuart. A boutique agency committed to concierge personalized service for discerning buyers, sellers and renters of residential and commercial properties. Millie is fluent in English and Spanish with a strong network of real estate professionals worldwide. Other post by Millie Gil
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