The sub prime market for home mortgages is a hot bed of predatory practices. These types of lenders prey on the elderly, borrowers with poor credit who have few options, and less educated and non English speaking customers. They give the entire industry in general and other good sub prime lenders more specifically a bad name.
A" Perfect Storm" of lax oversight, a down market, and hungry investors makes the perfect environment for predatory lending practices. And there are plenty of takers thanks to the aggressive marketing practices of some lenders.
Here are some of the top red flag warning signs for these lenders.
1.MONEY UPFRONT–Definitely a no-no. If someone asks for money upfront RUN don't walk out the door. Know the difference between this and a legitimate application fee.
2.ARM'S–Beware if an Adjustable Rate Mortgage is the only option offered.
3.BALLOON PAYMENT–Balloon's are for small kids not homeowners. They are too risky especially for Sub Prime Borrowers.
4.TOO BIG A LOAN–Be wary of a lender is trying to sell you on a loan that is bigger than you need.
5.HIGH INTEREST RATE–If the rate seems too high like more than 5 points over prime-keep shopping.
6.FREE VACATIONS–If the loan is a good one, you should need no […]
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There is no law in Iowa that requires a homeowner to purchase homeowner's insurance. If your home has a mortgage on it then your lender will require that you purchase homeowner's insurance, but even if your lender insists that you buy insurance keep in mind that you do not have to purchase insurance from any company recommended by your lender.
You have the choice of which company to purchase your policy from, and you have considerable leeway in the terms and the cost of your policy.
The first thing you want to do when purchasing a homeowner's policy is to make sure that you are buying the right size policy. Your policy needs to cover the replacement cost of your home 0 in other words, your policy should provide enough money to rebuild your home from the foundation up and to replace all of your home's contents 0 but don't make the mistake of insuring the value of the land under your home.
If you truly want to get the best rates on homeowner's insurance in Iowa there are several fairly easy steps you can take which will put you on the right path.
Start by taking good care of your credit rating. Don't […]
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For most homeowners in Florida their home represents their biggest investment and their most valuable and prized asset. Therefore it's only natural that they would want to do everything possible to protect their investment. One way to protect your home and its contents is to purchase homeowner's insurance.
Even though everyone wants to protect their home in case of a disaster, everyone still wants to get the best rates on homeowner's insurance in Florida that they possibly can.
The good news is there are several simple steps you can take that can help to reduce the cost of your homeowner's policy.
Let start by reviewing how much insurance you need. You need enough insurance to rebuild your home from the foundation up and to replace the contents of your home. In other words, after a disaster you need enough money to put things back the way they were.
The one thing you do not want to pay for is homeowner's insurance on the value of the land underneath your home. Your land doesn't need to be insured.
Keep in mind that here in Florida most homeowner's policies have a wind exclusion and no standard homeowner's policy covers your home in case of flooding. You need […]
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