• HOMIMPROV-header

Five warning signs of bad loan

Article by NYCZ

Getting a loan is serious business. You should take it as seriously as if you were dealing with the police or military. That means all papers must be filled out completely and with the details agreed on by both parties. You can easily get hoodwinked if you let your guard down with some of these lenders. Here are five signs to beware of.

  1. Something’s missing on documents you are being asked to sign. Even if there is some small APR or something else that they swear they will fill in later, do not sign it. Give it back and tell them you will only sign a completed document.
  2. The lender must give you copies of all papers you sign. If they are unwilling, then end your relationship with them and walk out.
  3. A lender should never, for any reason, encourage you to take out a loan for more than the value of the house. They might argue that you will need a little more to plant a garden or some such non-sense. Leave right away, because they are not honest. You are only allowed to take out the equivalent of the value of the home.
  4. On the final say of signing, you see that the terms are different than what you had agreed on. This is one of the biggest red flags that you should run, not walk, away from that lender as fast as you can.
  5. Lastly, if the lender has horns, a pointy tail and you see a pitch fork behind his office door, well, I don’t need to tell you that you are screwed, do I?