Buying a house is a dream come true for many people. In India, a large number of people buy a house, availing a home loan. It is the home loan which helps homebuyers achieve their dreams. A home loan is money borrowed from a bank or financial institution for a certain rate of interest (This could be fixed or floating). When we seek a loan, we look for the best deals and offers.
People normally rely on the internet to look for the best deals and they may come across imposters who promise attractive deals. In the bid to avail a home loan at an attractive interest rate, many people get cheated and lose their hard-earned money. So, in this blog, we will discuss how to spot a home loan scam.
See Also: How Not To Get Cheated While Buying A Home?
1. An unknown company with attractive ads
A home loan is a huge quantum loan and only authorized lenders can sanction this loan. Before approving the loan application, the lender will assess your creditworthiness by checking the credit score.
Even after the application is approved, checks ensure there are no loopholes. There is also a lot of paperwork involved. So, if you come across any advertisement which says minimal paperwork or speedy loan disbursal, you must be very careful. This could be a trap.
2. Advance fees
If the lender is asking you to pay advance fees for sanctioning the loan, be careful. The authorized lenders will ask for the processing fees only after the loan is sanctioned.
3. Not answering tough questions
If the representative of the company is not ready to answers how they are offering loans at a very attractive rate or any other tough questions; do not proceed with the deal. The lender should not hide anything from the borrower and they must explain everything without hesitation.
4. Pressure Tactics
Fraudsters use various tricks to make borrowers sign the documents, without giving them a chance to go through them. But, you should not fall for these tricks. Instead, you must go through the documents before signing them. When you read the document, you might come across some tricky terms and conditions.
5. Asking you to provide personal or financial information
When you are looking for a home loan online, some fraudulent websites might ask you to provide your personal and financial information. If any website which claims to be an approved lender is asking you to provide your personal and financial information, be very careful. No lender will ask you to provide your financial information. This is private data.
See Also: Beware of Fake Loan Aggregators
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