How To Protect Yourself From Mortgage Fraud When Refinancing Your Home
The decision to refinance can be an incredibly smart move for many homeowners, and it often frees people up from high mortgage rates.
This one move has the ability to save Americans thousands of dollars over time.
But fraud in the real estate world is a real thing and unfortunately, mortgage fraud is a growing problem in our nation.
“Mortgage fraud occurs when a potential homebuyer, seller, or lender lies or omits key information that leads to a mortgage loan approval or terms that the applicant wouldn’t normally qualify to receive.”
Today we will talk about how you can protect yourself from mortgage fraud.
Know Your Mortgage Lender And Broker
Like most professional jobs, mortgage lenders have testing and licensing requirements they need to meet to become certified at their job.
Only work with licensed mortgage brokers, and make sure they are well reviewed or were referred to you by a trusted source.
Watch For Warning Signs
Even if you’ve worked with a mortgage company in the past, it’s never a bad idea to get a second or even third opinion.
When you get multiple opinions, there are certain inconsistencies you want to watch out for.
While mortgage brokers can certainly give you varied rates, you want to be extra wary of outrageous promises and major inconsistencies between brokers.
These are often signs of a dishonest mortgage broker.
Read All Documentation Thoroughly
A good mortgage broker will never rush you through the process of understanding and agreeing to new terms.
Never sign a mortgage document that has blank spaces, or one that you don’t fully comprehend.
And always, always make sure you keep your own separate record of any loan term changes.