Always shop around to get the feel of different broker approaches and personalities. More importantly, compare rates and terms so that disproportionately high ones will stand out.

Don’t wait until you get to the closing table to find out the lender isn’t offering what (s)he promised. If you are refinancing your home, you have a 3-day cooling off period to back out of the deal.

Insist that your FICO score be explained in detail. There are brokers called sub-prime lenders who offer home loans to ‘bad credit risks’ at higher rates. They are not necessarily unscrupulous.

Don’t pick your lender through any of the following methods:

A random flyer displayed outdoors or stuck to your windshield

Junk mail from an unknown company

Telemarketer

If you’ve picked your lender from a legitimate source and you are still uncomfortable, go with your gut. Here are some shyster tactics:

The broker spews a monologue, leaving little room for your input

You’re being finessed into agreeing something you don’t understand

The rates are very high

The broker pressures you in any way, either to close the deal or accept higher payments than you can afford

They use the phrase “bad credit, no problem”

They OK “fibbing” on the application

They ask you to sign a blank contract

The loan is presented as a cure-all

They use intimidation tactics, saying that “no one else will lend to you”

Link to credit and your mortgage loan

http://www.housebuyingtips.com/organize.htm

Always report shady lenders to the Attorney General or the FTC, even if you’re embarrassed. Do the next guy a good turn.