When you’re buying a house or refinancing, you want to get the best deal possible, but you also need to be careful to avoid fraudulent mortgage lending practices. Here are some basic guidelines to reduce the risk that you’ll be taken in by a mortgage lending scam.
Work with Someone You Know or Trust
The best way to steer around potential mortgage fraud is to do business with someone that you know, who you’ve worked with before. If this is the first time you’ve used a mortgage banker, get referrals from people you trust, including family, friends and professional advisors.
Only Work with Someone You Can Meet in Person
It’s been possible to apply for and obtain a mortgage loan online for years, but you always want to know that the mortgage lender has a bricks and mortar office somewhere. If it’s just an e-mail address and a cell phone number, there’s a good chance it’s not legitimate.
Check Out the Lender
There are organizations, such as the Better Business Bureau, who track companies and can tell you if they’ve had complaints filed against them. Don’t be surprised, though, if there’s been at least one complaint filed against the lender—that’s not unusual. But if there are dozens or more, look elsewhere. Furthermore, find out how long the mortgage lender has been in business. If the company is relatively new, find out where their owners were previously, and what they were doing professionally. As a general rule, there’s greater risk in a newer company, but there are always exceptions.
Don’t Sign Anything Unless You Know What It Is
The lender may put a stack of documents in front of you and tell you they’re a “formality.” Take the time to carefully review every document. If you don’t know what it is or what it means, don’t sign it. If necessary, contact an attorney to explain the document to you.
Contact the Law Offices of David J. Karbasian, PC
Send us an e-mail today or call us at 856-667-4666 / 856-600-HURT to schedule an appointment. We handle all personal injury claims on a contingent fee basis. We won’t charge any attorney fees unless we recover compensation for your losses. Evening and weekend meetings can be arranged upon request. We’ll come to your home or the hospital to meet with you, if necessary.
