Home Equity Loans ? Research Your Lender Carefully

Real estate prices are rising across the country, and Americans are tapping into their home equity like never before. Americans took out $431 billion in home equity loans in 2004, and that amount may increase in 2005. The reasons vary; some are using the money for home improvement, others are using the money to buy real estate, and some are taking reverse mortgages in order to enjoy a better retirement. With interest rates still near historic lows and the bull real estate market continuing, more and more predatory lenders are entering the lending profession.

Most lenders are honest, and prospective borrowers will probably not have any problems resulting from taking out a loan with a national bank. On the other hand, newer, smaller, and less honest lenders are advertising aggressively and may grab your attention by offering terms that seem more favorable than those offered by the larger banks. Sometimes, these terms sound too good to be true, and they often are. Here are a few things to watch out for when taking out a home loan:

  • A promised low interest rate "disappears", only to be replaced with a higher figure on the contract at closing time. The borrowers, who expected to close right then and there, feel pressured to sign and often accept the higher interest rate.


  • Previously unmentioned fees turn up on the application at closing. Again, by presenting these previously undisclosed fees at closing time, the borrower is pressured to sign.


  • Blanks on the application form. It's hard to believe that a lender would present a blank form and assure the borrower that the blanks will be filled in later, but this actually happens, and borrowers actually sign such deals. Remember, your signature on the form constitutes your agreement to the terms, even if the terms are filled in later.


  • These problems can be avoided by taking a few simple precautionary steps. Ask about the total fees and interest rates ahead of time. Inform your lender that you fully expect to see those same figures on the documents at closing, and make it clear that you will not sign documents that state otherwise. Make certain that you have provided honest information to the lender. Refuse to sign any blank documents. These things may seem obvious, but when closing approaches, borrowers tend to get in a hurry, as they are eager to get the closing out of the way. Borrowing against your home is not something to take lightly; you can lose your home if you unknowingly sign a predatory document. Take your time.

    ©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation information and HomeEquityHelp.net, a site devoted to information on home equity loans.

    In The News:


    pen paper and inkwell


    cat break through


    Mortgage Sales Hit Problems

    The housing market has been buoyant over the past few... Read More

    Biweekly Mortgage

    The biweekly mortgage has been around for years but with... Read More

    How To Save Hundreds A Month On Your Mortgage

    When it comes to American spending habits, the sad truth... Read More

    Getting The Best Rates On Mortgages And Loans

    With an impending up-grade to the family due in a... Read More

    Taking the Time to Find the Best Home Improvement Loans

    The best home improvement loans usually aren't going to be... Read More

    A Guide to UK Buy to Let Mortgages

    Essentially there is little difference between the process that one... Read More

    Mortgage Information

    A mortgage is borrowing money using property as a security,... Read More

    Bad Credit Home Loan - Apply Online and Keep Your Credit Score as High as Possible

    If you have a poor or bad credit history with... Read More

    The Truth About Shopping for Mortgage Rates

    With so much lender advertising focusing just on rates, you... Read More

    Residential Mortgages ? a Step Ahead on the Property Ladder

    Doesn't Residential mortgage give the impression that they are a... Read More

    Need a Mortgage, Refinance or Equity Loan? Learn What it Takes, Before Applying

    Do you know what it takes to qualify for mortgage... Read More

    Advantages Of Mortgage Pre-Approval

    There are several advantages to getting mortgage pre-approval before looking... Read More

    The Top 5 Reasons to Buy a Home

    1. Save on your income tax.Yes, something good can come... Read More

    Sound Financial Standing Entails Capital Raising Remortgage

    Raising capital is integral for growth and expansion of an... Read More

    Avoiding Foreclosure Scams

    If your mortgage company is threatening foreclosure, there are things... Read More

    Are You A Victim Of A Predatory Mortgage Foreclosure?

    Help is available to borrowers who have claims against their... Read More

    Getting The Best Home Equity Loan

    Owing to the popularity of home equity loans, there are... Read More

    Applying for a Home Loan

    Applying for a home loan may not be the most... Read More

    Home Equity Loans Popular Scams

    Most borrowers fail to realize that when trading their much... Read More

    Hard Money Loans - Reasons Why You Might Want To Try Applying With A Subprime Mortgage Lender

    Before you apply for a hard money loan, try applying... Read More

    Real Estate Finance Strategy that Few People Consider

    If you are considering a new home loan anytime soon,... Read More

    Council Right To Buy Mortgage ? Transform Your Accommodation Into Home

    Homeowner - does this term catch your attention every time... Read More

    Home Equity Loan ? When Does Refinancing Make Sense?

    For the last two years, interest rates have been much... Read More

    4 Things to Watch Out for When Choosing a Mortgage Company

    We all know that there are a lot of mortgage... Read More

    Obtaining a Home Equity Loan Online

    Private lenders, banks, and mortgage companies are all setting up... Read More

    Refinancing Your Home - How and Why?

    Chances are you may need a little extra money to... Read More

    Selling Your Business Note

    Before I go further, let me ask a question- if... Read More

    Bad Credit Loans Authenticate What Is Positive About Bad Credit

    This might not be the front page news but it... Read More

    Home Equity Loans Company ? 7 Key Questions to Help You Choose One

    Choosing the right home equity loan can be tricky; you... Read More

    I Have A Slice of the American Dream and It is a 30 Year Nightmare

    Well, we did it. We are buying a beautiful, brand... Read More

    Online Mortgage Loan Companies Are Convenient

    There are many reasons to use the internet to take... Read More

    Subprime Mortgage Loans Online - What To Expect

    Applying for a subprime mortgage loan online can seem intimidating... Read More

    Top 10 Things to Consider on Home Loans

    Here are our Top 10 most important things to consider... Read More