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Mortgage Fraud Protection and Prevention


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TERMINOLOGY

Mortgage fraud is a serious problem in the lending industry today. Many unsuspecting borrowers are taken advantage of by fraudulent lending institutions everyday. Here are a few things to consider about mortgage fraud and how you can prevent yourself from becoming a victim in the future.

Be Skeptical

When you are shopping for a mortgage, a healthy amount of skepticism is necessary. While you do not want to get in the habit of being negative about every single thing that comes along, you want to be cautious. If something sounds like it is way too good to be true, then you should probably stay away from it. Most lenders tend to have similar programs and if one of them is offering you something that is head and shoulders above the rest, you might want to be skeptical. Every now and then, you can find a great deal out there in the mortgage market. However, before you sign up for anything, you need to make sure that you are doing your due diligence when it comes to researching your lender.

Research

Before you ever start working with a mortgage lender, you need to research. In most cases, you will want to stick with lenders that are well-known and that you are familiar with. There are many small lenders out there that will try to take advantage of you. Therefore, you need to make sure you do your homework when it comes to learning about a lender. You should get online and go to the Better Business Bureau website in order to see what other customers think about their service. If you are dealing with a scam, you will definitely be able to see many unhappy customers that have left bad ratings. There are also several ratings websites out there that will allow customers to rate the service that they were given by a mortgage lender. These resources can be very valuable and let you know what other people are thinking.

Learn about the Market

You can also protect yourself by learning as much as you can about the mortgage market. Spend some time reading about the different loan programs that are commonly available. You should also look at current mortgage rates in the market. This way, you will be able to know if the interest rate that you are being quoted are in line with the rest of the nation. For example, if you see that today's average interest rate in the nation is 7 percent and you find a lender that is claiming to give you a 2 percent fixed rate loan, you might want to practice skepticism. Most of the time, lenders are going to be right in line with what is out there in the market at any given time. If you have exceptional credit, you may be able to get a lower rate, but it will not be by a substantial amount.