To Avoid a Bogus Loan:

Be suspicious of anyone who offers you “bargain loans”. Don’t rely on salespeople who promise easy credit.

Beware of offers that are only good for a very short time.

Beware of anyone who contacts you first. Most good mortgage lenders don’t solicit business over the phone or just show up on your doorstep.

Read contracts carefully and understand everything before signing.

Avoid “balloon payments”. Balloon payments require small monthly payments but a very large payment at the end of the loan period.

Never act quickly. Say no to lenders who ask for up-front fees or offer next day approval.

Shop around for loans. Lenders are highly competitive.