Sub-Prime Mortgage Company - 4 Signs of a Predatory Sub-Prime Lender

If you have got bad credit and are looking to get a home loan, likelihood are, you are going to be applying with a subprime lender. Subprime lenders specialise in funding for people with poor credit history or "less than perfect credit".

Getting a subprime mortgage loan can be good if you can get a sensible interest rate and terms and then refinance as soon as the pre-payment punishment time period is over. However, because borrowers usually have got fewer mortgage options because of their bad credit, they can unknowingly get pushed into a loan that is predatory or unjustifiably more than expensive than what they should be able to measure up for.

Here are some things to watch out for when dealing with a sub-prime mortgage lender:

1. Get the shutting costs and all fees in authorship at least 24 hours before closing - Many subprime lenders, because they cognize you have got fewer other options, will charge bizarre fees at closing, knowing that the borrower will most likely just pay them.

2. Beware of the lender encouraging you to borrow more than than you can realistically afford - This usually stops in foreclosure, which is what you desire to avoid.

3. Ask about pre-payment penalties - Almost all subprime mortgage loans come up with prepayment penalties, do certain you cognize exactly what they are in advance. Once the document are signed its too late. It can do it so that you have got to wait longer than you desire to, to refinance.

4. Know what interest rate you are getting, and get it in authorship first - This is one manner where subprime lenders are known for gouging borrowers. Find out what comparable interest rates are for other subprime lenders and do certain that your interest rate is competitory or comparable.

To see our listing of suggested subprime mortgage companies online, visit
this page: Recommended Subprime Mortgage Companies Online.