Protect Yourself from Predatory Lenders

One of the biggest financial decisions that a person makes in their lifetime is to buy a home. There are many lenders out there today that are available to assist you with making that happen. However, make sure that you understand the entire process to ensure that you are truly making an informed decision.

Every year, there are home buyers that fall victim to predatory lending. Historically, they are first time home buyers but other home buyers have fallen victim as well. Below are some tips that will hopefully assist you in protecting you against predatory lenders.

First-Attend a first time home buyer seminar. These seminars are free for those who would like to attend. If someone tries to charge you a fee for attending a seminar, back up and find another one. Usually, your lender can help you find a seminar to attend. You can also take these online through the Virginia Housing and Development Authority, or www.vhda.com, and receive a completion certificate at the end of the online training. Other classes are offered in Roanoke at the Total Action against Poverty or TAP office.

Second-Interview several real estate professionals or REALTORS. Ask for references. Think of this as a job interview. You want to find the best candidate to assist you in finding that perfect home, that is within your price point. I can assist you in finding that perfect agent. There are several professional, full time REALTORS within my sphere of influence that I can recommend to you when that time comes.

Third-Shop the neighborhood. You don't want to pay to much for a house if the comparable sales don't match up. This is where picking a top notch REALTOR can assist you. They have access to the MLS and can pull closed transactions within that neighborhood. This will help you when you tailor your initial offer to purchase.

Fourth-Don't let anyone convince you to borrower more money than you are comfortable with. That goes for REALTORS and Mortgage Originators. When I pre-approve someone for a mortgage, I will always give you two numbers. One is the maximum that you are eligible to purchase, based on the criteria that you have given me, and then, give you the figure that YOU are looking to be at.

Fifth-Know what you are signing. Never, Never, Never sign a blank document. If information is filled in after you have signed, you are likely on the hook for whatever it says. Insert "NA" of draw lines through blank pages to prevent verbiage from being added after the fact.

People are losing their homes due to predatory lending practices. Make sure that you are protected. Investigate the REALTOR, the loan officer, and even the title company or closing attorney. Make sure all fees are disclosed to you upfront and that you are truly comfortable with all parties involved.

Ask your loan officer if they are going to attend your closing. It is your money that they are lending, the least that they can do is show up and thank you at the closing table.

For more information or to have a top notch REALTOR referral, please feel free to contact me directly at www.DaveShelor.com, or via email at david.shelor@prosperitymortgage.com. I can also be reached by phone at 540-382-5270, ext 327.