Are you wanting to get a home loan? If so there is something you need to be wary of. Its called preditory lending, and it could cost you your home. Here are more details.

The essense of preditory lending is simple. Preditory lending attempts to make a home loan to a prospective buyer at terms so disadvantageous that the borrow will probably default on the loan at some point. Then the lender confiscates the house and sells it to another unwary buyer. The terms of the loan are so configured as to strip the buyer of his equity, and burdens the buyer with such bad terms that foreclosure is almost inevitable.

Not surprisingly, preditory lenders prey on consumers who do not have access to conventional mortgages, people who are considered at high risk for the standard package of home loans. They are often the poor, or the jobless, people bankrupted by high medical expenses, or the unwary.

Look for these signs to tip you off that a lender might be predatory:

1.The lender offers to make a home loan for more than the appraised value of the house.
2. The lender asks you to make false statements on your home loan application.
3.The lender asks you to sign a blank document, assuring you that the 'details' will be filled in later.
The lender extends a loan to a family who cannot possibly afford the loan payments for an extended period of time.

When looking for a home loan, the best path to take is to compare loans from different sites. And by all means contact your local financial institutions. Often the best deals are not on the net but down the street.