Scams

Avoiding mortgage scams is crucial to protect your finances and home ownership. Mortgage scams can take various forms, but they often involve fraudulent individuals or companies attempting to steal your money, personal information, or even your home. Here are some essential tips to help you avoid falling victim to mortgage scams:

Watch for Red Flags: Be cautious if a lender offers terms that seem too good to be true, such as extremely low interest rates or no credit checks. Scammers often use these tactics to lure victims.
Avoid Upfront Fees: Legitimate brokers don't usually ask for upfront fees (except credit report and appraisal fees) before processing your application. If someone requires money upfront to get you approved for a mortgage - it's usually a scam
Beware of Unsolicited Offers: Be wary of unsolicited offers through email, phone calls, or mail. Legitimate brokers do not typically reach out to you without your prior request.
Work with Reputable Brokers: Research and choose well-established, reputable mortgage brokers. Check their credentials and reviews from previous clients.
Verify Licensing: Ensure that the broker is licensed in your state. You can check with your state's regulatory agency to confirm their legitimacy.
Understand the Terms: Read and understand all loan documents and terms before signing. If something is unclear, ask questions or seek legal advice.
Avoid Pressure Tactics: Scammers often use high-pressure sales tactics to rush you into making a decision. Take your time to make an informed choice.
Secure Your Personal Information: Be cautious about sharing personal and financial information. Only provide such details to trusted, established organizations.
Use a Secure Payment Method: Be cautious of any individual who requests payment through unconventional or untraceable methods, such as gift cards or wire transfers.
Report Suspected Scams: If you suspect a mortgage scam or have been a victim, report it to your local law enforcement, the Federal Trade Commission (FTC), and your state's attorney general's office.
Stay Informed: Keep yourself informed about common mortgage scams and new tactics scammers may use. Awareness is your best defense.

Avoiding Scams