How to avoid mortgage lending scams?
Answer:Mortgage lending scams have become an unpleasant reality that comes in the way too often. According to federal statistics, since 2002 mortgage lending scams cases have quadrupled. Many times it is the borrower's lack of basic knowledge about mortgages that facilitates mortgage fraud. And while it is not necessary to become an expert at home loans to get a fair mortgage, it is recommended you educate yourself about different mortgage loans. This is in short the easiest way to avoid being scammed in the mortgage lending process.
How to Recognize Mortgage Lending Scams
An aggressive lender pushing you towards quick closing is a likely candidate for a trickster. They are probably offering you the best loan and are going to solve all your financial troubles as soon as you sign. You are so taken by the offer that you forget to read the small print. This is crucial if you are signing an ARM.
Another scenario is when a nice short term discount is offered to you. The offer expires very soon, so you have to hurry to get those teaser rates. Then, on the agreement you have higher rates and are charged with previously undisclosed fees. This is a very common mortgage lending scams practice. If you sign a document with rates different than what you agreed to, it takes a lot of efforts to straighten things.
An especially precarious situation can occur when your mortgage consultant is willing to go great lengths to get you the desired mortgage. Remember, taking a loan you may not afford to pay in the future may require additional refinancing costs later, and may very well get you a foreclosure.
Final piece of advice: Monitor your credit report and score regularly, to ensure there are no inaccuracies or unauthorized activity. Your credit report and score are the two major methods that creditors and lenders use to make a credit decision about you. Higher scores usually mean lower interest rates, which will save you money.
See All 3 National Credit Scores & 3 Reports Instantly, Online & Free!
| Not at all | Definitely |
Mortgage QnA is not a common forum. We have special rules:
- Post no questions here. To ask a question, click the Ask a Question link
- We will not publish answers that include any form of advertising
- Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
Common misspellings: mortage and morgage