There has been a tremendous turnaround in the mortgage lending sector with Bad Credit Mortgage Rates being offered at an all time low, over the last couple of years. Borrowers searching to refinance their homes are able to secure a number of bad credit mortgage loans quotes from willing lenders. However, as with any financial options, you should do your due diligence, as there has been an increase in mortgage scams.
The growth in the number of scams has been attributed to the soft stance that has been taken by lenders. There has been an influx of borrowers looking for bad credit mortgage rate quotes for the last few years, and most of these innocent borrowers normally approach several lenders and compare bad credit mortgage quotes, with the intention of getting the lowest and most convenient mortgage for their needs. This has made it simpler for scammers to operate and take advantage of this lucrative niche.
It is easy to spot typical mortgage scams. They normally use bad credit mortgage rates quotes to lure innocent clients. As such, they simply offer quotes without bothering to give detailed explanations. They know that borrowers are looking for low bad credit rates and they take full advantage of this.
Hence, when searching for genuine bad mortgage credit, you need to look at the big picture. Bad credit mortgage rates are not the only criteria used in evaluating lenders. You must obtain all the extra fees associated with the loans. The law requires lenders to provide a good faith estimate to all borrowers. The good faith estimate contains all the terms and charges related to the loan. Lenders are also required to provide borrowers with a Truth in Lending Form. This document is a compilation of the financial evaluation of the loan you are applying for. The two documents must be proffered to the lender within three days after you show interest in the mortgage. These two documents must be thoroughly scrutinized with reference to the verbal dialogue you have received from the lender.
Another tactic used by unscrupulous lenders is through unsolicited phone calls and emails. They will bombard you with incessant offers that seem too good to be true. Such offers assume that you are among the low income borrowers who cannot secure mortgages at good rates. If you happen to fall into this trap, you will be shocked later on to realize that the bad credit mortgage rates stated erstwhile have changed.
Similarly, mortgage scammers might lure you with ridiculously low bad credit mortgage rates. Once you have swallowed the bait, you might be informed that your low bracket income disqualifies you from the original terms stated. The unscrupulous lender makes you believe that they are doing you a favor by providing the bad credit mortgage. If you comply, you are left with a bad credit mortgage with high interest rates that you might not be able to cope with. This will lead to default on monthly payments, which might compel you to foreclose on your home to the benefit of the lender.