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4 Honest Tips to Help You Avoid Mortgage Fraud

4 Honest Tips to Help You Avoid Mortgage Fraud

What is Mortgage Fraud?

The best way to avoid mortgage fraud is to understand what it is. Mortgage fraud is either outright lying, failing to state the facts ("omission"), or misrepresentation ("bending the facts") by either the person or company who provides a house loan or the borrower. Often, there is some financial incentive that spurs a lender or borrower to commit mortgage fraud.

How Can I Avoid Mortgage Fraud?

Here are a few things you can do to avoid taking part in or being a victim of mortgage fraud:

  • Beware of any "secret" deals where you can't tell a bank or other lender about the deal for a specified period of time. If you are asked to hide anything from other interested parties, it's very likely that you are dealing with fraud.
  • If a lender asks you to distort the facts, don't do it. One common type of fraud is having a borrower overstate their income in order to get into a house they would not otherwise qualify for.
  • Never pay back a gift. A gift, by definition, never needs to be repaid. When someone requires you to pay back a gift, it becomes a loan.
  • If you feel rushed through a loan, that is not a good sign. A lender who does not require a credit check, doesn't answer your questions to your satisfaction, or gives you very little information about the mortgage in the first place may be a predatory lender.

If you are looking for an honest loan company that you can trust, look to Midland Mortgage Corporation. With over 30 years of experience, we provide individualized service to meet your needs. You can depend on us to achieve your dream of homeownership the right way Contact ustoday at 1-800--854-9484 to see how easy it is.

Posted Oct 11, 2018 by Midland Mortgage Corporation