PREDATORY LOANS

3 BIG MISTAKES
BORROWERS MAKE

Relying on a real estate agent or home repair contractor to recommend a lender

• You find your lender . . . don't let the lender "find you". Visit at least three ...start with banks and credit unions or non-profit lenders. Don't borrow from a "sub-prime" unless you absolutely have to, and always comparison shop!
• Know the signs of a predatory loan

Relying only on the interest rate to determine whether the loan is "bad"

• Also get the APR (Annual Percentage Rate)
• Get total fees and points (this is where loan sharks really GET you!)

Relying on verbal promises from the lender

• Don't trust the old line "I'm your friend and want to help you". They smile, they LIE!
• Get everything in writing
• Read your contract to make sure it is accurate

HOUSING INFO LINE
267-5223