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Central Florida For Sale By Owner is dedicated to the idea of saving you money.
We are able to do this by cutting out the commission percentage when attempting
to sell your home. This, of course, can literally save you thousands of dollars
in the process, but there is another important percentage you need to be aware of
that can save you a LOT of money. This is the rate and fees you can expect from
lenders when financing the purchase of a home.
Sadly, despite law changes in predatory lending practices, there are still a lot
of underhanded lenders that will attempt to squeeze an extra percentage from an
individual that is inexperienced with the way bank rates change and fluctuate. This
is commonly referred to as predatory mortgage servicing and it comes in a variety
of forms. The individuals perpetrating these offences are smart, and most likely
their scams will come in the form of various fees attributed to your loan, not simply
a high interest rate. Below is a list of a few common complaints registered with
the AAMA (Americans Against Mortgage Abuse,) but we strongly encourage you to read
the full report
here.
These practices should raise a red flag when dealing with your potential lending
company:
- The lending company shows loan transaction history from a variety of different sources.
- Delaying the postings of payments made in order to collect late fees.
- Creating excessive penalties for late fees.
- Inventing new fees, often come in the form of account management fees.
- Failing to accurately reflect balances on the loan statement, then imposing additional
charges.
- The forced placement of a new insurance company, even if you have your own insurance.
- Not reporting accounts that have been in dispute to the appropriate credit agencies.
- Having an appraisal done to the property, then charging the fees to the borrower’s
account.
- Using incorrect dates as a basis for payment calculations.
- Juggling dates for purposes of charging late fees as well as others.
These are just a few of the known predatory practices that you should be aware of,
but the best way to avoid being a victim is to deal with a reputable company. Also
go into the process with the old cliché, “If it’s too good to be true, it probably
is.” These companies are very competitive since they are helping you buy the single
largest asset you most likely own, your house, but this also means that they usually
differ in the rate they will be willing to give you.
One of the first things you should do is find out the current bank rate averages
for Florida homes in your
specific zip code. This will give you a current average for bank rates in your area.
It shows you an overnight and weekly average based on a number of banking sources.
This is a good starting point on what kind of a local rate you can look to expect.
Then make sure you shop around! This is wise in all aspects of buying a home in
Florida.
Be sure to stay wise and list your home with Central Florida For Sale By Owner! We will be happy to give
advice about current Florida bank rates and proper lending practices to YOU and
all of our valued website guests!
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