Guiding Light CDC(GLCDC) is dedicated to providing the highest quality counseling on issues that affects  the community. Citizens are asked to explore solutions and stategies prior to making uninformed decisions. Decisions that could affect the homebuyer for the rest of their life.The organization offers Pre-purchase Counseling, Post-Purchase Counseling, Foreclosure Counseling, Financial Fitness Counseling and Predatory Lending Counseling. GLCDC is committed to improving the affordability of neighborhood housing, the vitality of neighborhood economies and the quality of community life. The counselors at GLCDC have had training from the Neighborhood Center for Homeowner Education Center (NCHEC). Training includes: lending basics, foreclosure, predatory lending, counseling, forclosure intervention and more. The counselors at Guiding Light CDC are more than willing to administer one on one counseling sessions with homebuyers that need such meeting. Sometimes, the counseling session can be conducted via the phone. The urgency of the situation will dictate the type of counseling session the homebuyer will receive.

Common predatory lending tactics include:

• Selling properties for much more than they are worth using false appraisals.
• Encouraging borrowers to lie about their income, expenses, or cash available for down payments in order to get a loan.
• Knowingly lending more money than a borrower can afford to repay.
• Charging high interest rates to borrowers that are not based on their credit history.
• Charging fees for unnecessary or nonexistent products and/or services.
• Pressuring borrowers to accept higher-risk loans such as balloon loans, interest only payments, and steep pre-payment penalites.
• Targeting vulnerable borrowers in need of cash due to medical, unemplyment or debt problems.
• Convincing borrowers to refinance again and again when there is no benefit to the borrower, but severe losses to the home equity are accrued.
• Using high pressure sales tactics to sell home improvements and then finance them at high interest rates.
  

Tips to avoid a predatory loan:

• Shop for a lender and compare costs. Be suspicious if anyone tries to steer you to just one lender.
• Beware of fees greater than 3 or 4 percent of a home mortgage loan amount that strip equity from your new home.
• Get information about the prices of other homes in the neighborhood. Don't be fooled into paying too much.
• Hire a properly qualified and licensed home inspector to carefully inspect the property before you buy. Determine whether you or the seller will be responsible for paying for the repairs.
• Do not make a false statement on your loan application, such as overstating your income, the source of your down payment, failing to disclose the nature and amount of your debts, or how long you have been employed.
• Avoid prepayment penalties touted by subprime lenders that trap borrowers in high-rate loans, which too often leads to foreclosure.
• Be wary of promises to refinance the loan to a better rate in the future.
• Remember that a low monthly payment isn't always the best deal. Look at the TOTAL cost of the loan.