10 Ways To Avoid Loan Fraud

[ Bookmark this page! ] [ get HTML Version ]

Bridging Loan Benefits
A bridging loan has many benefits, some of which are listed below.

A bridging loan can be used to cover the financial gap when buying one property before the existing one is sold. They are looked on as short term lending to cover a specific short term need.

A bridging loan as the name implies is a loan used to "bridge" the financial gap between monies required for your new pr... Read loans article



Auto Financing loan - How you can get low monthly payments on loan
Finance departments are where dealers make most of their profit (well, financing and after-market products).

Their profit lies on something called the "Finance Reserve." That is the difference between the interest rate the dealer is offering you and the lower interest rate (called the "buy rate") the bank offers the dealer.

For example, lets say you have a credit score of 700... Read loans article



10 Ways To Avoid Loan Fraud
Every year, misinformed homebuyers, often first-time purchasers or seniors, become victims of predatory lending or loan fraud. Below you'll find the top ten ways to avoid becoming a victim yourself.

1. Take your time and shop around. You should be able to compare prices and houses. If a lender or broker tells you they are your only chance to get a loan or owning a home, don't do business with them.

2. Do not sign a sales contract or loan documents that are blank or that contain information which is not true.

3. Be certain that the costs and loan terms at closing are what you originally agreed to.

4. Do not be talked into lying about lie about your income, expenses, or cash available for downpayments in order to get a loan.

5. Watch out for higher-risk loans such as balloon loans, interest only payments, and steep pre-payment penalties.

6. Be careful about disclosing things like your need of cash due to medical, unemployment or debt problems. You are very vulnerable in these cases.

7. Don't strip your home's equity by refinancing again and again when there is no benefit to you.

8. Beware of false appraisals.

9. Do not let anyone convince you to borrow more money than you know you can afford to repay. If you get behind on your payments, you risk losing your house and all of the money you put into your property.

10. Get several quotes from multiple brokers or lenders so you know you're being charged a fair interest rate based on your credit history, not your race or national origin.

About The Author

David Brumbaugh is the owner and operator of EZandFree.com, which provides consumers with online tools for easily obtaining free competitive Mortgage and Loan Quotes. It also serves as a mechanism by which Mortgage Brokers can obtain legitimate qualified leads from people who need their services.

Terms of Use

Copyright 2004 David E. Brumbaugh. All rights reserved. This article may be published in your newsletter or web site. It must be reproduced in its entirety including the biography and web address.

What do you want to do?
Bookmark this page before you lose it
Search this site for FREE information
Help spread the word. E-mail this page to a friend

Online Loan Lenders - 8 Point Checklist

Here are 8 things to consider, when evaluating lenders online:



Website Design

Privacy Policy

About Us

Popularity

Reputation

Short Form

Points, Fees, Terms and Rates

Communication



1. Website Design:

The webpage is, in fact, the storefront of the internet. In the real world, your first impressions make all the difference. Well, it's no different on the internet.



Does the site seem forth-right? Can you glean valuable information immediately, or does it appear that you are being pushed to click here, click there?

Does the page load fast, indicative of a reliable server, or does it seem to take forever for everything to be displayed (or worse, are you receiving various error messages).

Are there a ridiculous amount of pop-ups, pop-unders, and other in-your-face ad campaigns, or, does the lender simply put it all out there for you to decide?



Examine the website design, and trust your first impressions.

2. Privacy Policy:

You will likely be sharing some personal information, in exchange for loan offers. You shouldn't be so concerned about this that it limits your ability to reach out to possible lenders. However, use your common sense.



Does the website post its privacy policy? If so, take a quick peak at it.

Does it seem to make sense, and is it reasonable?



Virtually all trustworthy online businesses now have posted privacy policies to both assure you of their intent, and to comply with current laws and regulations.

3. About Us:

Does the lender post an "about us" page?



If not, this could be a red flag. In other words, the lender should take pride in its history, its vision, and its mission statement. An "about us" page is an opportunity for your lender to tell you a little bit about themselves. If you don't see it, then what are they hiding?

On the other hand, if you do see an "about us" page, go check it out. How long have they been in business? Where are they located? Do they post a phone number, and do they provide contact information? What are their policies and philosophies?



Reading the "about us" page can tell you tremendous information about the lender.

4. Popularity:

Take your lender's website address, and plug it into Alexa.Com. Alexa is a tool, created by the folks at Amazon, to evaluate traffic on the internet, and to provide a venue for visitors to post critiques of websites.



Popularity is gauged by the Alexa rating, and the lower the number, the higher the rating. For example, our site, http://loanresources.net , as of today's date, has a 3 month average Alexa Rating of 86,517. This means that we are one of the top 100,000 websites in terms of traffic (and popularity). If we get down to let's say 50,000, then our traffic and popularity has increased.

You can use this tool to evaluate the traffic of your prospective lenders.

Our advice is this: Don't be blinded by popularity alone. There are plenty of competitive lenders and mortgage brokers out there with the highest integrity, which may not, necessarily, have a favorable Alexa rating. It doesn't mean that they shouldn't be considered. It is simply a measurement of traffic, and that's it. Don't miss out on what they have to offer.



Just use popularity as one of the many tools at your disposal, when evaluating online lenders.

5. Reputation:

There are a number of ways to evaluate a lender's reputation. Talking to friends, family, and associates, of course, is one way. Another method is to see whether or not the prospective lender is a member of the Better Business Bureau (BBB at BBB.Com), and if there are any complaints on record filed against them.



The BBB produces what's called a "Reliability Report", and this report will provide you with corporate information (such as name, address, phone number), BBB membership information, whether or not the lender is a participant of the "BBB Online" program, along with a complaint history, and each complaints final resolution.

The report also states the overall rating that they give the lender. Remember we discussed earlier, that popularity is not everything? Here's a prime example. You'd be surprised how many "popular" lenders, may in fact carry a rather lengthy BBB Reliability report filled with a variety of complaints.

Again, just use your good, common sense, and consider reputation alongside all other factors.



Also, if you see something on the reliability report that may be concerning you, talk to your prospective lender, and see if they can give you a reasonable explanation for what happened.

6. Short-Form:

Complete an online "short form" application, and within minutes, several competitive loan offers could be making their way to you.



Consider the short form application, when evaluating the lender. Is it short indeed, or are they asking you for way too much information?

Be expected to share some basic information about yourself, such as name, phone number, salary information, etc., but never disclose what you feel is too personal or compromising, such as a social security number, credit card numbers, etc.

Does the short-form make sense, is it well organized, and is it simple for you to follow and understand? This is important, because if the form is easy to complete, the lender may be saying that their whole loan process is simple and easy. On the other hand, if the form is arduous and complex, what does that tell you?



So, evaluate your comfort level with the context of each lender's short form application online.

7. Points, Fees, Terms, and Rates:

After you complete the online short-form, prospective loan offers will almost instantly be making their way to you.



These preliminary loan offers will present you with important information about the points, fees, terms, and rates being offered.

This, of course, is the nuts and bolts of what you are evaluating...This is the dollars and cents of your preliminary loan offers.

Obtain several offers, and compare them to each other.

Who offers the best savings? Who seems too low to believe? Who is way too high to consider?

Check the current rates and see how these offers compare. We've got a RateWatch set up at our website, or, you can find other resources from any search engine.



8. Communication:

After you've obtained several loan offers, it will be time to talk to your prospective lenders over the phone.



Do not fear this process. Remember, you are the buyer of this product, and you are in the driver's seat. Think of it as an interview, and you are in charge. Ask some good questions, and see if you are comfortable with the relationship forming.

How does the lender strike you over the phone? Is it someone that you feel you could do business with, or, does the conversation seem forced and uncomfortable?

Use the phone call to evaluate the relationship, and to obtain useful information.

Do not make an immediate decision. Talk to 3 or 4 lenders, and then take a pause, and evaluate what you've learned.



Use your instincts to gauge who you worked well with, and who might present challenges down the road.

We've enjoyed providing this information to you, and we wish you the best of luck in your pursuits. Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.

Publisher's Directions:

This article may be freely distributed so long as the copyright, author's information, disclaimer, and an active link (where possible) are included.

About The Author

Copyright 2004 LoanResources.net

Tom Levine provides a solid, common sense approach to solving problems and answering questions relating to consumer loan products. His website seeks to provide free online resources for the consumer, including rate-watch, tips and articles, financial communication, news, and links to products and services. You can check out Tom's website here: http://loanresources.net, or you can email Tom at info@loanresources.net.


Top rated articles for loans

1. Holiday Loans - Expand Your Horizon
Why do kids get all the breaks? Winter-weary adults, fed up with gray, uninspired landscapes need spring vacation too. This year consider a get away to a room with an inspiring view. You have been cas... Read loans article

2. Bad Credit Loan - There are loans for bad credit
Bad credit loans seem to be a hot topic these days. In fact, if you need a bad credit loan, you're likely to find an overabundance of information.

See if this sounds familiar. You need a lo... Read loans article

3. Used Car Loan - Apply On The Internet
If you purchase a used car, you might need to apply for a used car loan, whether it is before or during the car purchase process. As a matter of fact you can apply for a used auto loan from banks, cre... Read loans article

4. Getting Instant Approval of Personal Loans
After rate of interest, if there is any thing that most people desire for in a personal loan, then it is instant approval. Instant approval of personal loans has different connotations for different p... Read loans article

5. Personal Loans - What your mama never told you
How are loans charged?

A personal loan is a lump sum that you typically borrow from your bank or building society bank, or through a retailer where you are buying an expensive item such as ... Read loans article

6. Online Car Loans - How To Get A Good Quote Online
Online car loans enable you to get a good quote and ultimately the best deal. With dealerships and local banks, you are at the mercy of their rates. But with the internet, you can find the lowest rate... Read loans article

7. Education Loans
The importance of a higher degree cannot be understated. In this information age, the best and the highest paying jobs are offered only to a privileged few, who are experts in their chosen fields. A s... Read loans article

8. Instant Cash Loans - How To Avoid High Fees
You have heard the stories of people taking out a cash advance only to owe more in finance charges than in principal. You can't help but ask - how did this happen? Will it happen to me? You can avoi... Read loans article

9. Homeowner Loans - Useful Information
Here is a useful guide to Homeowner Loans. A Homeowner Loan is a loan secured against your home. Homeowner loans can help you unlock capital tied up in your home. They offer solutions that many other ... Read loans article

10. Information About Homeowner Loans
Homeowner loans UK are a very versatile type of personal loan that are offered to the owners of homes or real estate.

These loans use the value of the home or real estate to secure the loan... Read loans article

1. Auto Loan - Getting An Auto Loan With Bad Credit
2. Faxless Cash Advance Loans - Quick Loan And No Paperwork
3. Federal Debt Consolidation Loans For Students
4. Boat Loans For Bon Voyage
5. Best Credit Card - How To Shop For Credit Card
6. Bridge Loans - Questions Answered
7. Student Loan Consolidation - Is It Right For Me
8. How To Get A Bad Credit Loan
9. Payday Loans Online - Easy Cash Advance
10. RV Loans - Advice About Loans For Recreational Vehicles

Mortgage loans and refinance loan in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi,



10 Ways To Avoid Loan Fraud
Home loan, mortgage loan, refinance loan services in Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania,

Loan services in Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin and Wyoming.