Predatory Lending Practices
Every year, misinformed homebuyers become victims of predatory lending or loan fraud. Here are some tips to help you avoid being a victim of loan fraud.
The first step is to interview some real estate professionals, before you select one to help you buy or sell a home. Don't let anyone persuade you to make a false statement on your loan application. When you apply for a mortgage loan, every piece of information that you submit must be accurate and complete. Don't let anyone convince you to borrow more money than you know you can afford to repay. Never sign a blank document or a document containing blanks.
Don't accept a lender's statement that you have bad credit without reviewing your credit report yourself for mistakes and inaccuracies. Beware of loan terms and conditions that may mean higher costs for you. Bank loans usually cost 1-3% of the loan amount for points and fees to the lender. If you are being charged more, find out why. Predatory Lenders are not beyond trying to swindle you. They will tell you your costs, but when it comes time to sign the terms are not what you had previously agreed upon. Read what you sign get the loan thru" or "that's the way it's done."
The Case Properties Network of John, Diana, and Melissa are here to help you if you suspect you have been the victim of a bad loan. You can always call us at (925) 754-9023, (925) 382-9771, (925) 382-9754, or (925) 382-5222.
Housing now less affordable
General conditions for housing affordability dropped in the third quarter because of higher home prices and mortgage costs. David Lereah, NAR's chief economist, said "During the first half of this year, the housing affordability index experienced the highest levels in 30 years."
NAR President Cathy Whatley framed the purchasing power for the typical household. "In general, people can afford a home costing about 4.5 times their income," she said. "For a median-income family buying the median-priced existing home, this means the monthly mortgage payment for principal and interest is only 18.3 percent of income – well within normal lending guidelines."
The association's first-time home buyer affordability index shows a typical first-time buyer household, with an estimated income of $30,316, had 78.6 percent of the income needed to purchase a typical starter home.
 |
 |
 |
 |
 |
 |
 |
