- Shop around for a lender while comparing costs. Be suspicious of individuals trying to direct you exclusively to one particular lender.
- Before purchasing a home, attend a homeownership education program typically offered by a HUD approved agency.
- Interview several real estate agents and check their credentials.
- Don’t get tricked into paying too much for a home. Gather information about the prices for other homes in the neighborhood included what homes have been sold for.
- Don’t be tricked or persuaded to make a false statement on your loan application. By over stating your income or understating your debt is considered fraud and result in criminal charges.
- Don’t let anyone convince you to borrow more money than you can afford to repay. If you get behind on your mortgage you risk losing everything.
- Don’t sign documents that are not completely filled out. You may be held liable if someone changes the document without you knowing. If there are blanks on your document insert “N/A” or put a line through the space.
- Don’t be pressured into accept higher-risk loans such as balloon loans, interest only payment and steep pre-payment penalties.
- Read all documents carefully and if you don’t understand something ask questions. Never sign anything until you fully understand. As a safety measure you may opt to have a real estate lawyer or a HUD approved agency take a look at the paperwork.
- If it sounds to good to be true it probably is…
Tags: mortgage fraud, prevent mortgage fraud
