A mortgage loan is an advance of funds from a lender to a borrower for the purchase of real estate. The mortgage itself is a legal document that sets forth the conditions of the loan, the manner and duration of repayment, and which pledges the borrower’s property (home) as security for the loan.
As with any major purchase, it pays to shop around when looking for a mortgage loan. Different lenders will offer different terms, have different requirements, and offer varying levels of service.
"Predatory lending" has become shorthand for describing a variety of lending practices that may be disadvantageous to borrowers. It can mean any type of abusive lending practice where the lender benefits through unworthiness, deceit, misrepresentation, bad faith, or dishonesty.
Be sure to work with a licensed lender (try DOBI's Licensee Search) and use the tools below when shopping for a mortgage loan.