Just like knowing how to protect yourself from loan discrimination, you should know how to protect yourself from predatory lending when applying for a mortgage in KC. Predatory lending is lending money to borrowers with extreme terms and conditions. Those most susceptible to predatory lending are:
Lenders should always be licensed and honest about all details about your mortgage in KC. There are several ways you can recognize predatory lending and steps you can take avoid it:
- Don’t be convinced to make a false statement
- Don’t be pressured into a loan
- Don’t sign a document containing blanks
Don’t Make False Statements
Lying on your mortgage application is a crime and you could be convicted of mortgage fraud. If your lender is telling you that it is okay to supply incorrect information on your application, find a new lender.
Walk Away If Pressured
No one should be pressured into a loan when applying for a mortgage in KC. If you are being pressured into a loan before you are comfortable with your options and have read the contract, it could be a warning sign of predatory lending. Signing the contract without looking it over could leave you with unexpected and expensive fees.
Don’t Sign Blank Documents
If you are applying for a mortgage in KC and you are handed documents to sign that are blank, do not sign them. By signing documents with blank spaces, you are leaving yourself open to unknown terms and conditions. If a form does contain blank spaces, put a line through them or write “N/A” to avoid being held liable for any information the lender inserts later.
What to Do If You Are a Victim of Predatory Lending
If you have applied for a mortgage in KC and found yourself to be a victim of predatory lending, there are some steps you can take:
Your right to rescind before committing to a loan is a provision under the Truth in Lending Act. Once loan documents are signed, you have three business days to decide whether or not to cancel the loan. However, the right to rescind does not cover:
The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.
- Business loans
- Loans made for secondary residences
- Loans made to purchase a house