Mortgage Fraud: 5 Ways to Avoid It

Mortgage fraud is one of the most common adversities people go through. To avoid such tragedy, transact only with trusted mortgage brokers. You can often find them through referrals or through thorough research. But first, it is important to know how to avoid falling into this nightmare:

MediPro Capital Finance and other mortgage brokers in Brisbane list some ways to avoid mortgage fraud:

  1. Educate yourself

Innocence should never be an excuse, and you should not let frauds take advantage of it. Educate yourself about the procedure, laws, and policies before, during, and after signing the deal. Ask questions if needed.

  1. Do a background check on the company

Aside from researching about mortgage procedures and inclusions, it is also important to do a background check on the company you are signing with. Look for their business license, their business history, know about their employees and interview their clients if possible. A legitimate mortgage broker would make their business information available for public access.

  1. Have a notary in the room

Have a notary in the room when signing documents. It is important to have a witness should legal issues arise in the future. Note that your notary is simply a witness and should not be the one responsible for closing the deal.

  1. Do not sign on blank fields

NEVER. Blank fields are one of the most obvious red flag. Your official signature binds you to agreements that you sign. Do not give fraud companies a chance to push you into agreements where you cannot leave.

  1. Payment inconsistencies are a sign of red flag

Advanced fees, as well as penalties, are a sign of red flag. Fees should be made only when the deal is made. Other payments made before or after that are considered questionable.

Mortgage fraud has been a recurring problem, but that does not mean it’s unavoidable. Should you encounter one, do not forget to report scammers and help save other families too. With proper research and a keen mind, you can protect yourself from mortgage fraud.