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TERMINOLOGY

The majority of mortgage lenders that you encounter in the marketplace are legitimate. However, there are a small percentage of companies that run scams. An illegitimate mortgage company can cause many problems and cost you a lot of money during the process, possibly several thousand unnecessary dollars. Locating a legitimate mortgage lender is essential to your success in acquiring a mortgage. Here are a few ways to avoid that small percentage of those who get scammed.

Word-of-Mouth

The best way to find a legitimate mortgage lender is through word-of-mouth advertising. Word-of-mouth advertising is the most powerful form of marketing available. It is also the most accurate form of advertising as it is shared directly by someone with experience. When you talk to someone who already has a mortgage with a particular company, you can verify if they are legitimate. They can also tell you what to expect from the company and how they do business. They can give you a true feel.

Better Business Bureau

If you do not know anyone that has a mortgage with the particular company that you are working with, the Better Business Bureau is a good source of information. They can fill you in on the company profile and a lot of great information. You will be able to access a detailed report on the company that was researched by the BBB. You will be able to see all of the complaints that have been filed against them in the last few years. They will also offer you a comprehensive grade from "A" through "F". This will give you a clear picture of the company's reputation. If they have a good grade with the Better Business Bureau, you can rest assured that it is indeed a legitimate mortgage broker

Online Reviews

Doing your homework online should be one of the most important steps of researching a company. There are a number of different websites out there that will help you make an educated decision. You will want to check out independent reviews so that you can be assured they are not working in coordination with anyone else. Independent reviewers will tell you what they know in an unbiased manner.

Many of these sites will also have a section that allows real people to rate the companies as well. This is a great asset as it gives you the opinion of many different people about the prospective companies that you are looking at. They might give a composite rating score of all the different people that have contributed. This is a great way to get a quick overview of a particular company. If the rating is low, you should probably stay away. If the rating is satisfactory or above, then you can consider them further.