| Mortgages are a funny thing. There are more lenders | | | | There are definite things to look out for when securing |
| out there than one can shake a stick at, and beware; | | | | your financing, does the lender explain everything? Do |
| not all of them are scrupulous. According to statistics | | | | they take the time to walk you through the terms of |
| approximately 30% of the mortgage brokers operating | | | | your loan, detailing everything from start to finish? Do |
| in the U.S. are considered to be suspicious or do not | | | | they seem to want to rush the process and have you |
| meet the standards of proper business practices. Ask | | | | sign quickly and without much explanation? One of |
| yourself, is my prospective broker in that 30%? The | | | | these approaches should be setting off alarms. Make |
| question remains how can you be sure that your | | | | sure that the lender explains the type of loan you are |
| broker is above board? Well there are a few ways, | | | | receiving. The last thing you want to do is sign your |
| but they involve some legwork. Considering that you | | | | agreement, only later to discover that you have signed |
| are purchasing a house, a fairly expensive commodity | | | | up for a "balloon loan" where the balance of the loan is |
| as purchases go; it might be a good idea to do the | | | | due after only 5-7 years when you were expecting a |
| research. | | | | standard mortgage spread over 20-30 years. |
| A good idea is to start with your local Chamber of | | | | The best practice is to use lenders that are |
| Commerce. Chambers usually have some great | | | | recommended by the Chamber of Commerce and |
| resources on financial institutions and you might even | | | | the BBB. Stick to institutions that have a longstanding |
| be able to find a lender who is a member of the local | | | | reputation in the community and have the references |
| Chamber. Another good spot to look is the Better | | | | and customer testimonials to prove it. If you are dealing |
| Business Bureau. But do be careful, businesses that | | | | with established banks then usually the bank's |
| run afoul of the BBB tend to change names quickly so | | | | reputation will speak for itself but in utilizing private |
| it pays to find out as much info about your lender as | | | | lenders be sure to do the homework. |
| possible. | | | | |