Finding an Honest Lender

Shop around
If you need a loan, start by asking local banks, credit unions, or mortgage companies. Whether you borrow for home repairs, medical expenses, or to consolidate your debt into a single monthly payment, compare the total costs of the loan as well as interest rates. Points and fees are complicated. Study them until you understand them.

Be cautious
A loan with a lower monthly payment is not always the better deal; it may have a high balloon payment that is due in a few years. Call or visit local housing counseling agencies that offer counseling on how to find a fair loan.

Ask questions
Before borrowing money, know exactly what the lender is offering. You have a legal right to have - in writing - the total cost of the loan, the annual percentage rate, the monthly payments, and how long you have to pay back the loan. Always ask questions until you understand everything. Ask the lender to explain all fees and points. When you borrow money, it is important to compare more than the monthly payment. Remember that credit insurance - such as life insurance to pay off the loan if the homeowner dies - can have a very high premium and only protects the lender, not you. Once you've narrowed down your choices to a few lenders, check with your state attorney general and ask if there have been complaints against the companies.

815 S Freedom Blvd.
Suite 100
Provo, UT 84601

Phone: 801.373.8200
Fax: 801.373.8228
Email:

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HUD Approved Housing Counseling Agency

Helping People. Changing lives.