Avoiding Predatory Lenders

One of the biggest reasons to go with an upfront mortgage lender is so you don't fall victim to predatory lending. In the mortgage business, just like the rest of the world, there are some less than honest individuals trying their best to separate you from your money.

In many cases, what's known as "predatory lending", is perfectly legal. It usually involves loan officers charging extremely high interest rates and fees, as high as their state law will allow. They prey on the fact that many people don't take the time to shop around or ask questions.

Another common scenario is the adjustable rate mortgage, or "ARM" loan. While this is a very common loan, it's not uncommon for people to receive an adjustable rate mortgage without even knowing it. One day there payment sky rockets, and they're forced to refinance or foreclose.

That's why it's so important to go with an upfront mortgage lender, and get all of the details of the loan before you sign any agreements.