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

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

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

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

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

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

3. Ask about pre-payment penalties - Almost all subprime mortgage loans come with prepayment penalties, make sure you know exactly what they are in advance. Once the papers are signed its too late. It can make it so that you have to wait longer than you want to, to refinance.

4. Know what interest rate you are getting, and get it in writing first - This is one way where subprime lenders are known for gouging borrowers. Find out what comparable interest rates are for other subprime lenders and make sure that your interest rate is competitive or comparable.

To view our list of recommended subprime mortgage companies online, visit this page: Recommended Subprime Mortgage Companies Online.

Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.

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table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.nydailynews.com/real_estate/2008/10/10/2008-10-10_no_need_to_suffer_a_loan__call_your_bank-1.htmlcid=1256346910ei=rWXySMqOCqTe6AOKt83CBwusg=AFQjCNEN7sgu2zxiLMKIRDtzzd-lbX8_cgimg src=http://news.google.com/news?imgefp=8KkRNyI1q6gJimgurl=assets.nydailynews.com/img/2008/10/11/amd_corcoran.jpg width=80 height=56 alt= border=1brfont size=-2New York Daily News/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://seattlepi.nwsource.com/money/382894_real11.htmlcid=1256346910ei=rWXySMqOCqTe6AOKt83CBwusg=AFQjCNHu4NWgEmDI49wFE8uWkNIfw4bRCAHomeowners have new option/abrfont size=-1font color=#6f6f6fSeattle Post Intelligencernbsp;-/font nobrOct 10, 2008/nobr/fontbrfont size=-1The Hope for Homeowners plan is supposed to help up to 400000 homeowners who can#39;t afford their bmortgage/b payments and who can#39;t brefinance/b to get a lower b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.unionleader.com/article.aspx%3Fheadline%3DNew%2Bprogram%2Boffers%2Bfinancial%2Bhelp%2Bfor%2Bhomeowners%26articleId%3D4e35e05d-db1c-47dc-bb21-238917e58a25cid=1256346910ei=rWXySMqOCqTe6AOKt83CBwusg=AFQjCNHgFKigpDkE8DkKS34JacjAU8QfjwNew program offers financial help for homeowners/a font size=-1 color=#6f6f6fnobrThe Union Leader/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1256346910hl=ennobrall 10 news articles/nobr/a/font/div/font/td/tr/table
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table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.seacoastonline.com/articles/20081012-BIZ-810120321cid=0ei=rWXySMqOCqTe6AOKt83CBwusg=AFQjCNETiyUEfyMufQzc0_K5wwCFvUaJdQIn market for a bmortgage/b?/abrfont size=-1font color=#6f6f6fPortsmouth Herald News,nbsp;NHnbsp;-/font nobr10 hours ago/nobr/fontbrfont size=-1What could possibly be wrong with brefinancing/b your bmortgage/b if you can lower your interest rate? Since the Federal Reserve lowered short-term interest rates b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.courant.com/news/local/fv/hc-avonmeltdown.artoct12,0,7702616.storycid=0ei=rWXySMqOCqTe6AOKt83CBwusg=AFQjCNFMw6nlHDY1WN0YkJxKiUzMasVL1wAvon Jittery As It Prepares To bRefinance/b Debt/abrfont size=-1font color=#6f6f6fHartford Courant,nbsp;United Statesnbsp;-/font nobr13 hours ago/nobr/fontbrfont size=-1b.../b been struggling to process just $1 billion a week, a victim of the same credit strangulation that has stalled the bmortgage/b and commercial paper markets. b.../b/font/div/font/td/tr/table
mortgage refinance - Google News

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