Because home values increase so fast in the state, it can be quite tempting to get an Alaska home equity loan. However, you will want to be very careful. Home equity loan scams are very common and Alaska is only one of two states that don't regulate mortgage lenders. To make sure you don't get scammed on your Alaska home equity loan, here are two things you will want to watch out for:
Lenders Who Ask You to Falsify Information
If a lender ever encourages you to falsify information on a loan application, it should raise a red flag. Chances are the lender is only asking you to do this because he knows that false information on your application is the only way you will get approved for the loan. While it may seem like the lender is doing you a favor, that's probably not the case. In fact, the lender is probably hoping that you will not be able to afford the loan. This way, you lose your home, and the lender reaps the benefits a. k. a. your equity.
Unreasonable High Rates
One of the easiest ways for lenders to make money is by charging an unreasonably high interest rate. Most lenders won't do this, because it cuts down on their business. A smart borrower who shops around will find a better deal somewhere else and take it. Even so, there are many lenders who try to get away with charging an extra point or two in hopes that they catch a borrower who isn't savvy to all of the deals that are out there. If you are planning on getting an Alaska home equity loan, do your homework and compare the rates of several lenders. It is the only way to make sure that you are not being victimized by unfair lending practices.
Visit Alaska Lending Center to see our Top 3 Home Equity Lenders for Alaska , whether you are looking for home purchase, refinance or a home equity loan.