Beware of Home Loan Scams

The humungous rise in the pricing of real estate market makes it difficult for an individual to own their dream home. The slowly recovering housing market has created a perfect environment for the breeding of mortgage scams with desperate homeowners as an easy prey. If you are presently looking to finance your first home or have been a long time property owner, you should be aware of the numerous threats still prevailing despite the very strict scrutiny on home loans in India. A growing threat among home owners and businesses, you need to be on guard and not end up becoming a victim of these home loan scams. So, before you apply for a home loan it is absolutely mandatory to consider these factors.

Beware of upfront fees –

When you apply for a home loan there will be numerous factors to consider, as the home loans in India are designed to entice the consumer with their attractive schemes. They are advertised profusely with lucrative offers. Beware of any upfront fee demanded by the bank as it is just a corrupt and faulty practice followed.

Foreclosure charges –

The crooks involved in these scams go all-out effort in trying to make the deals look very attractive and legit.The situation in India is far worse than other countries as there are no proper rules or laws for the safety of the consumers. Last year RBI intervened and laid down certain guidelines to be followed by all banks, making it absolutely compulsory for banks to not take any foreclosure charges.

Rate of interest –

Firms providing Home Loans in India should provide proper information to the clients about the current and the fixed rates of interests they will be paying through their entire tenure of loans. They should provide the customer with the current floating rates available as per government policies.

Renegotiating your loan –

There are some agents present in the market who will renegotiate your home loan interest rate in order to get your loan approved as per your desired interest rate. These agents are masters of duplicating documents and they will present duplicate loan documents to dupe you badly. It is of utmost importance that you cross check the loan documents and interest rates from the bank itself before making any sort of payment to the agent.

 
Never sign anything you cannot understand –

Every time you are about to sign on the loan papers make sure you read all the documents and agreements carefully before signing. If you are unable to understand something you should consult an attorney or a friend to avoid getting trapped in any scam. Always be cautious of using the services of anyone offering to help you understand the terms of the loan.