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Sadly, on top of all of the other negative things that are going on across the nation and the world, such as suckeran unstable economy, consumers also have to contend with acts of fraud and unsavory business types that can destroy lives.

One such notable problem that has been in the news lately is the subject of  loan fraud. Uninformed or misinformed consumers have been victims of such fraud al too often and happens during times that should be of celebration, such as when buying a home for the first time.

There are a few things consumers can do to protect themselves during the loan process and even before, to help ensure that they do not become a statistic of fraudulent loans.

1. Contact more than one company to evaluate each of the pros and cons of the loan offer. If a loan company tells you that they are the only company that will give you a loan, walk away immediately. Getting several quotes can help you ensure you are being treated fairly.

2. Be very cautious about revealing too much information about your need for the cash. If a company understands such vulnerabilities, you could be facing an unfair advantage against the loan company.

3. Under no circumstance should you be told to lie or provide misleading information in order to get a loan. It should be a huge red flag if someone asks you to change information concerning your income, cash, or expenses. Walk away from any situation like that, no matter how badly you need the loan.

4. Never let anyone force you into borrowing more money than you are comfortable repaying. When an offer sounds too good to be true, it generally is.

5. Pay close attention to the terms of repayments. Balloon payments and interest only payments should be avoided. It is important you know and understand all of terms of the loan so there are no surprises. This includes repayment terms and all fees and penalties that can be incurred due to a late or missed payment.

6. Never, under any circumstances, sign a loan form or contract that is incomplete or has blank areas on them. Check each page for correct information and read over all documents, no matter how tedious they may seem. If you find any information that is not true, make sure it gets corrected immediately and entirely before proceeding.

7. During closing, make absolutely sure that you are signing exactly what was agreed upon and that additional information has not been added or changed without your consent.



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