Beware of Predatory Mortgage Lenders

The Fair Housing Act (Title VIII of the Civil Rights Act of 1968) prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents or legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability).

When you are considering buying a home follow these 8 tips to prevent being a victim of predatory lending and discrimination:

1.     Do you research before applying for a mortgage loan

2.     Shop around to several lenders before making a selection

3.     Ask questions if you don't understand something

4.     Take the paperwork home and read it over, contact a real estate lawyer or law school student to help explain any legal terms and information you don't understand

5.     Make sure all of your questions regarding the loan are answered 

6.     Make sure you are comfortable with the terms provided

7.     If the terms keep changing find another lender to do business with

8.     When all else fails go with your gut instinct, if it seems too good to be true it probably is

Also refer to the Housing and Urban Development Fair (HUD) cHousing website for more information on predatory lending and how to protect yourself or file a complaint at hud.gov. You can also file complaints with HUD or the Consumer Financial Protection Bureau consumerfinance.gov or the Better Business Bureau at bbb.org.