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1. Never let yourself be rushed into signing for a loan secured by your home. Always insist on a few days to think about it.
2. Don't let family members or friends talk you into taking out or co-signing a loan on your home for their own purposes. Look for other ways to help them out of financial difficulties, such as recommending debt counseling.
3. Shop around. Before you decide on a loan, meet with several different lenders, including large banks, small community institutions, your insurance agent and credit unions.
4. Review the contract with someone you trust and have a lawyer review the document. Many local bar associations, senior organizations and local colleges have low-cost lawyer services, well worth the money when you are putting your house on the line.
5. Never sign any document that contains blank lines that could be filled in after you sign.
6. Make sure you understand everything in the contract. Find out all the costs of the loan, including the APR (annual percentage rate), fees, points and closing costs.
7. Be extra cautious about using a contractor recommended by a lender, and vice versa. When choosing a contractor, get personal references and check them, and contact the appropriate government licensing agency to verify that the contractor is licensed.
8. If you negotiated in a language other than English with a loan broker or personal finance company, ask if a translation of the contract is available.
Copyright © 2006 Loan Mortgage Broker Information. Send comments here.
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