If you are an individual with a poor credit rating and are looking for a mortgage, there are scammers that want to take advantage of you. These “Predatory Mortgage Lenders” take advantage of your situation by overcharging you or structuring the mortgage so they will foreclose and take your home. Here is what you need to know to avoid being taken advantage of by a Predatory Mortgage Lender.

A predatory mortgage lender is any lender that takes advantage of a homeowner’s situation. These lenders prey on borrowers that do not know they are being taken advantage of. Often individuals with poor credit are eager to secure financing and are easily swayed by the tactics these lenders practice.The best thing you can do to avoid being taken advantage of is to be realistic with your expectations. If you know your credit is bad and a lender is promising low rates and easy qualification, you should question this lenders motivation. Any lender or broker that is pressuring you with sales tactics such as an “only chance offer,” consider it too good to be true. Here are tips to help you avoid predatory mortgage lenders.

Do Your Homework First

By doing your homework and researching mortgage lenders you will be able to avoid advantageous mortgage lenders. In the United States you are protected under the RESPA act of 1974 even if you have poor credit. Registering for a free mortgage guidebook using the links below will help you get started.

Use a Mortgage Broker

If you have a bad credit rating using a mortgage broker could help you find the best mortgage offer. You still need to carefully compare all aspects of the mortgage offers you consider; however, a broker could have access to bad credit mortgage lenders you might not find on your own.

Carefully Compare Mortgage Offers

You need to compare all aspects of the mortgage offers you consider, not just the interest rate. One common homeowner mistake is not comparison shopping for closing costs. If you do not shop beyond the interest rate it is easy to overpay thousands of dollars for your mortgage loan.

Never Sign Blank Documents

If a mortgage lender or broker asks you to sign a blank or incomplete document, take this as a sign they are not being honest with you. If you sign a blank or incomplete document the lender or broker can fill in anything they like and you have already agreed to it. Also, never sign anything agreeing to arbitration for settling disputes. Agreeing to arbitration severely limits your legal rights if there is ever a problem that needs legal action.

To learn more about avoiding predatory mortgage lenders and common homeowner mistakes, register for a free mortgage guidebook using the links below.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

Claim your free guidebook today at: http://www.refiadvisor.com

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