Home Improvement Loan Tips 4

Avoid Home Repair Scams

1. Unfortunately, there are dishonest contractors who are seeking to take advantage of unsuspecting homeowners. Be wary of signing any type of home-loan contract with a contractor who shows up on your doorstep and claims to be able to get you a low-rate loan for repairs that he suggests. Very often, these loans are misrepresented, and the contractor is actually being paid kickback fees by the bank. Not only will you owe more than you bargained for, but the work may never be finished, as the contractor moves on to the next house after being paid his fee by the bank.
   To avoid these types of scams, always seek out your loan first, then hire a contractor. Ask for advice from friends and neighbors about who to use for home improvement loans, or call a mortgage broker you've used before or know about firsthand. A reputable Realtor may also be able to help you find a good mortgage broker. Remember: If a home improvement deal seems too good to be true, it probably is.