How to Avoid Mortgage Fraud

buy a home without borrowing, so when it comes to buying a home, almost on par with the desire to do so, you need qualification for a mortgage. This perhaps is the hardest part because that will determine whether or not you buy it.

The qualification process can be fast but for many it is tortuous and difficult, because too many documents, proof of income and debts and an acceptable credit history is required.

Consequently, many buyers fall to the clutches of unscrupulous people who offer them a process in the blink of an eye, or with the naked dress costs which look “Too good to be true”, as the saying goes. These buyers fall victim to fraud with terrible consequences.

These are signs or warning signs of mortgage fraud that should take into account to avoid becoming a victim:

1. They say they can approve the loan although several banks have already indicated that you do not you qualify

Investigates the references offered by the loan, make sure it is a real bank with ability to do business in the city or country where you live. It is normal for a bank to tell you no and another yes, but if more than 2 bank says no, think about it, investigate and analyze before accepting the offer.

Do not be carried away and try to identify and understand the entire process. The criteria to approve your loan is quite similar in all banks, then why does this tell you yes and all others no?

2. They ask for an advance sum of money to the loan as an application fee

If before telling you whether you qualify or not, they ask you for money, beware! Some banks may ask you for money for pricing or even the official credit report, but at least you have a pre-approval, indicating that you have possibilities of getting approved for the loan.

3. The fine print in the loan conditions are impossible to read

As in any professional field, if you are not an expert you will not understand many of the terms used, but ask questions and seek information online or with your realtor. Having a very fine print on the contract is another warning sign of a possible fraud.

4. They offer too low payments

In the ideal world that is what everyone wants, but know that the reality is different. For example, there is no property of $300,000 to pay $300 or $500. You do not have to be an expert to realize that something is wrong if they offer something like this. If you see interest rates too low, ask why, what kind of loan you are getting.

5. They have no physical office established

In the United States and many other countries it is normal that most transactions are done over the Internet and the closing of the houses done in any restaurant without having to go through an office. But having a physical office gives a guarantee and assurance that you’re working with a registered professional solid company that legally exist.