How to protect yourself against home equity scams

How to protect yourself against home equity scams:

Never agree to a home equity loan if you can't afford the monthly payments.

Demand an explanation of any cost, term or condition you don't understand.

Don't fold under pressure to sign documents.

Shop around if you want credit insurance. Buying it from a lender may not be a good deal.

Refuse to sign documents you haven't read or that have blank spaces to be filled in after you have signed.

Keep meticulous records of what you have paid. File all the billing statements.

Never agree to a loan that has extra products you don't want to buy, such as credit insurance, or that includes terms that weren't there when you applied.

Challenge charges that you think are inaccurate.

Don't allow the promise of extra cash or lower monthly payments to cloud your judgment about whether the cost is worth it.

Check contractors' references before having work done on your home, and get more than one estimate.

Don't deed your property to anyone. Instead, talk with an attorney or someone else you trust. Keep a copy of everything you sign.

Be sure you are dealing with a reputable lender. You may want to check with your Better Business Bureau, state licensing authority, chamber of commerce or a consumer protection agency.

Ask trusted friends and relatives for referrals to lenders.

Top

Personalized mortgage rate quote

Copyright © Best-Mortgage-Companies.com 2006