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Mortgage, Buying A Home After Bankruptcy - Beware Of Shady Subprime Mortgage Lenders
by Carrie Reeder
If you have a recent bankruptcy and are looking to buy a home, be careful of unethical or predatory lenders. Whether you are looking online or offline for a mortgage lender, it is becoming increasingly more common that subprime lenders are taking advantage of bad credit borrowers.
Many lenders will take advantage of borrowers with recent bankruptcies and bad credit because they know that the borrowers loan options are limited. Sometimes these lenders will charge excessively high fees, extensive pre-payment penalties on the home or ask for a fee upfront to "process" the loan.
Here are some tips on applying for a mortgage loan after a bankruptcy: Beware of the Lender Asking For a Fee Upfront - Anytime you are applying for a mortgage loan, the only fee you should ever have to pay is the application fee which covers the cost of the lender pulling your credit application. Some lending scams involve asking for a processing fee of hundreds to thousands to process the loan.
Compare Loan Offers - If you can compare from 3-4 mortgage application quotes then you will know what to expect the current interest rate for subprime mortgage loans to be. If you accept the first mortgage loan offer you have, you may be paying a much higher interest rate than what is reasonable for your credit history.
Get Closing Costs in Writing - Brokers know that if a borrower has bad credit, they are most likely going to be more concerned about getting a reasonable interest rate and just getting approved than making sure they get normal closing costs. This is where many lenders will ding the borrower with credit problems. They will sometimes charge excessive closing cost fees. Get the list of closing costs in writing ahead of time and then do research online to make sure that the costs are reasonable. If the costs are not, go back to the lender and tell them that the closing costs are too high and you will not go through with the loan until they are lowered to be what is normal. The broker will usually comply, because they don't want the loan to fall through.
About The Author: View our recommended
http://www.abcloanguide.com/mortgageafterbankruptcy.shtml lenders.
Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans.
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The information provided in this article is the express opinion of the author. Exchangenet is not responsible for the content!
If you have a recent bankruptcy and are looking to buy a home, be careful of unethical or predatory lenders. Whether you are looking online or offline for a mortgage lender, it is becoming increasingly more common that subprime lenders are taking advantage of bad credit borrowers.
Many lenders will take advantage of borrowers with recent bankruptcies and bad credit because they know that the borrowers loan options are limited. Sometimes these lenders will charge excessively high fees, extensive pre-payment penalties on the home or ask for a fee upfront to "process" the loan.
Here are some tips on applying for a mortgage loan after a bankruptcy: Beware of the Lender Asking For a Fee Upfront - Anytime you are applying for a mortgage loan, the only fee you should ever have to pay is the application fee which covers the cost of the lender pulling your credit application. Some lending scams involve asking for a processing fee of hundreds to thousands to process the loan.
Compare Loan Offers - If you can compare from 3-4 mortgage application quotes then you will know what to expect the current interest rate for subprime mortgage loans to be. If you accept the first mortgage loan offer you have, you may be paying a much higher interest rate than what is reasonable for your credit history.
Get Closing Costs in Writing - Brokers know that if a borrower has bad credit, they are most likely going to be more concerned about getting a reasonable interest rate and just getting approved than making sure they get normal closing costs. This is where many lenders will ding the borrower with credit problems. They will sometimes charge excessive closing cost fees. Get the list of closing costs in writing ahead of time and then do research online to make sure that the costs are reasonable. If the costs are not, go back to the lender and tell them that the closing costs are too high and you will not go through with the loan until they are lowered to be what is normal. The broker will usually comply, because they don't want the loan to fall through.
About The Author: View our recommended
http://www.abcloanguide.com/mortgageafterbankruptcy.shtml lenders.
Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans.
These articles on lifestyle and more
Reprint this article free of charge as long as you keep the author's resource box or bio intact and the links active. A copy of the ezine or URL of the page where the article was reprinted emailed to the author would be very much appreciated. mortgage
Return to the selection of mortgage
You may want to try these articles on mortgage
Mortgage, Mortgage 101 - What You Need To Know About A Home Loan by Brad Stroh Approximately 1507 Words
Mortgage, Use Your House To Pay For Your House by Lin Ennis Approximately 813 Words
Mortgage, Why Using A Mortgage Broker Can Save You Money by Joseph Kenny Approximately 549 Words
Mortgage, Racial Inequity When It Should Be Irrelevant by Ed Jeffry And Luke Currier Approximately 993 Words
Mortgage, Mortgages. An Interest Only Mortgage: It Could Cost You More by Michael Challiner Approximately 733 Words
Mortgage, Citizens Advice Bureau Alert To Rising Secured Loan Mortgage Crisis by Lyn Hill Approximately 531 Words
Mortgage, Advantages And Disadvantages Of A Reverse Mortgage by Geoff Spencer Approximately 343 Words
Mortgage, Qualifying For A Bad Credit Mortgage - An Inside Look by Shelby Ryan Approximately 478 Words
You may want to try these websites for additional information
http://www.mortgage.com/
http://www.interest.com/content/calculators/
http://www.hsh.com/
The information provided in this article is the express opinion of the author. Exchangenet is not responsible for the content!
