Warning signs of a predatory loan

The loan is based on your property value, not your ability to repay it.

All information about the loan is not made available to you.

It’s not the loan you really want.

Lender or broker is not properly licensed.

The lender or broker gets your attention with one set of loan terms only to try and pressure you into something more expensive. In other words, bait and switch.

You are asked to sign forms with blank boxes or spaces that can be filled in later.

The comparison with your old loan is not made on an apples to apples basis.

Quoted rates and terms are not in writing and change significantly from what’s presented at closing.

Aggressive sales pitch.

You’re told to not bother reading the paperwork.

You’re told not to compare your loan with other lenders.