Watch out for mortgage fraudsters that are lurking and ready to take advantage of unsuspecting borrowers.
The Good News: You can beat them by knowing the red flags of mortgage–related fraud.
Rest assured that most mortgage lenders are legitimate. However, there are some fraudsters who pose as mortgage lenders with the intent of scamming borrowers out of their hard–earned money — especially in climates like today with upward pressure on mortgage rates and home prices in certain areas. These fraudsters prey on unsuspecting or inattentive borrowers as they seek to close more transactions and pocket more money. Unfortunately, involvement with an illegitimate mortgage company can cost you thousands of dollars, negatively affect your credit, and cause emotional distress.
Fortunately, many types of mortgage fraud can be spotted by watching out for these red flags:
Demands from “specialists” for advanced fees to replace your current credit history and make you a stronger candidate for a new mortgage, purportedly through a higher credit score or a new credit reputation.
Pressure to “act fast” or sign any paperwork that you haven’t had a chance to read or don’t fully understand.
A company/person you don’t know asks you to release personal financial information online or over the phone.
Advertisements by phone, letter or door–to–door with phrases such as “guaranteed mortgage” and “no credit check.”
Loan officer changes at the last minute, replacing your existing relationship and contact with one you don’t know.
Changes in your personal information that appears in final documents, including income, employment and savings — as well as any changes to the type or term of the loan you applied for.
Identifying a legitimate mortgage lender is essential to your success as a borrower and a homeowner. As with all companies requesting personal information — especially regarding your finances — you need to be cautious and do your homework. If something sounds too good to be true, it most likely is.
If you’re looking to get a new mortgage or refinance your existing loan, be sure to beware and stay aware. Visit My Home by Freddie Mac® for more information about renting, buying or owning a home.
Call Rick Cignoli @ 860.945.9284 to discuss the right mortgage option for your family and to take advantage of my FREE Mortgage “Jump Start” Pre-Approval with Rate Assurance service. And be ready to make an offer