Most homebuyers apply for a home loan to help them buy their dream home. While there are lots of mortgage options available, it can be hard to find the right lender who can help you realize your home purchase.
Buying a house with a mortgage is not just about finding the best mortgage option. It’s also about committing to find the Best Mortgage Lenders in Midland TX. It’s essential to realize that not all lenders are the same. Not all lenders will understand your situation and will offer you a mortgage that you can truly afford. Some will try to deceive you, using deceptive tactics to make you agree on unfair mortgage fees and terms.
It is crucial that you know how to spot a Predatory Lender in the first place to help you find the Best Mortgage Lenders in Midland TX. If you find that your mortgage lender has the following characteristics, then better take your business elsewhere.
They Encourage You To Borrow A Bigger Loan Amount
When applying for a mortgage, you’ll be able to check how much of a house you can afford to pay. A predatory lender will try to persuade you to borrow a bigger loan amount, saying you can afford it even if you can’t. They will pressure you to splurge on your house even if you perfectly know you’ll have a hard time paying for the monthly fees once approved.
They Rush You Into Signing A Mortgage Bond
Take note that a mortgage deal is a legal document. If you don’t take time to read and understand all the terms, then you might get in trouble in the future. This could mean higher fees and abusive terms. If a lender encourages you to sign the paperwork asap, take it as a red flag and shop for another lender.
They Fail To Provide A Loan Estimate
A Loan Estimate or a Good Faith Estimate is a document that allows a borrower to check the mortgage terms, rates, and fees offered by a lender. When shopping for mortgages, you can use this to compare which lender is offering the best terms and rates. If your lender fails to provide you a loan estimate, you won’t get to understand all the fees associated with the mortgage. If you decide to go and apply for a mortgage from such lender, you could be signing up for a contract with additional tens of thousands of dollars instead of saving money.
They Consent You To Lie On Your Home Loan Application
A reputable lender will never encourage borrowers to lie when applying for a mortgage. They make sure to verify all the information you provide is correct and will check if you can actually afford the mortgage. A predatory lender won’t do this, but will instead encourage you to lie just to get approved. Doing so can lead to your future financial crisis, and can cause you to be house poor.
They Impose Penalties If You Pay Off The Mortgage Early
Some lenders still have prepayment penalties. Such penalty can cost you a considerable amount of money for several years, just because you choose to pay off your mortgage early. As much as possible, shy away from such lenders. Make sure to read the contract before signing to avoid such penalties.