By L. Sampson
The internet can be a valuable resource for researching the
and outs of getting a home equity loan. It can also be a great
place to find a reputable mortgage broker, as long as you are
careful not to get caught in an online home equity loan scam.
Watch out for subprime lending.
Subprime lending is when a lender offers to give you a lone
an extremely high interest rate and tacks on excessive fees.
Usually these loans are given to high risk individuals who are
so desperate for a loan that they donít take the time to shop
around for a company that will work with them despite a bad
Watch out for equity stripping.
Equity stripping is when a loan is based solely on the value
your home, and doesnít take into consideration your ability to
repay the loan. The usual result of these loans, is the
borrower canít repay it and the lender ends up acquiring the
home and all the equity in it.
Watch out for predatory lenders.
Predatory lenders thrive on setting up loan situations in
the borrower is destined to default, consequently losing his
home. Some of the signs that you might be dealing with a
predatory lender include a broker that requires you to put
false information on the loan application, apply for a larger
loan than you need, or sign blank loan papers, saying they
be filled in later. You also want to avoid lenders that
you one set of terms when you first apply and then change the
terms when it comes time to sign or refuse to give you copies
of the forms once you have signed. Predatory lenders often
misrepresent the type of credit you are being given and fail
provide the required loan disclosures.
There are a lot of reasons to apply for a home equity loan
online. The process is fast, easy, and convenient, as long as
you take care to avoid the pitfalls of dealing with
About The Author: Visit
www.abcloanguide.com/homeequityloan.shtml for a list of
home equity loan lenders online. View our recommended lenders
for online home equity loans.