5 Steps to Avoid Mortgage Fraud
Date Added: March 09, 2008 07:46:49 PM
One of the top worries for those considering purchasing real estate is mortgage fraud. Ending up in the middle of a scheme involving mortgage fraud can be emotionally and financially taxing. While most mortgage professionals are both reputable and trustworthy, those mountains of paperwork filled with legal jargon can make for misunderstandings. Before signing those documents you may want to read through the following advice to protect yourself and fully understand what you’re signing.
Make sure to read the documents you’re signing.
This may sound obvious, but single point is where most borrowers make the mistake that costs them. Do not feel pressured to rush through the documents and sign them quickly. Check them over to make sure what they contain is accurate. Mistakes are always possible and one more set of eyes verifying that everything is as you expect only helps to assure its accuracy.
So take your time to review each page. You might even take notes if you have any questions on what they contain. You should not overlook checking things that may seem obvious also such as addresses, spelling, identification numbers and rates. It is easy to make these minor corrections if you spot them early in the process.
Another point is to not feel like you have to sign the documents. If you don’t feel comfortable with what has been presented you can walk away. There are agencies such as non-profit HUD approved counselors which can assist you in reviewing loan applications and documents during the process.
Make sure that all copies of the documents you are signing contain the same information and get a copy.
You are entitled to receive copies of everything that you sign and don’t forget to make sure that your copies contain the same information that were in the originals.
Whenever you are signing multiple copies of any documents you must take an extra moment to ensure that all copies contain the same information as the original.
Make sure not to falsify or even be slightly misleading about information on your loan paperwork.
Trying to push through your loan with misleading information is just not worth it. Anyone that advises you to do so is putting you at risk.
If you are advised to do so or if you’re lending professional tells you it is ok or everyone does it and it is legal, ask them to put that in writing for you.
Ensure that your broker is licensed.
Take a moment to ensure that your broker is licensed and in good standing is a good idea. You will be sharing personal information with your real estate agent so the extra moment you take to verify they are licensed can provide you with some reassurance.
Your mortgage broker should fully disclose what they will be earning on your loan transaction.
Many times this gets brushed over and not fully disclosed, but it is important to understand that sometimes the amount of the mortgage broker’s compensation can correspond to the interest rate of your loan.
Take the time with the mortgage broker to read the paperwork and understand what you’re getting. Ask any questions you need in order to fully understand all your options and the loan you are getting. You will be glad you took the extra time.
