Tips for Protecting Yourself From Mortgage Scams

There are a number of mortgage scams to watch out for during the home-buying process. Though an exciting time, unfortunately, it also presents opportunities for scammers to take advantage of unsuspecting buyers and homeowners. These scams can result in financial losses, or even the loss of your home. By staying informed and learning to recognize the warning signs, you can protect yourself and your investment.

Common Scams

Scams can occur across different areas of the process. Mortgage loan modification scams charge fees for adjusted mortgage terms that are non-existent. Phishing scams are most common around closings and aim to steal sensitive banking information. Bait-and-switch and foreclosure scams can also occur, offering false promises to homeowners and home-buyers. 

Warning Signs

It’s important to keep an eye out for red flags throughout the process. Make note of any requests for payment of unrendered services, pressure tactics urging you to act without review or guidance, unsolicited offers coming from uninitiated calls or messages, or professionals who offer services without providing proper licensing or identification. If any of these situations occur, make sure to report them immediately to your lender or local authorities. 

How to Choose A Reliable Mortgage Lender

Protect yourself through your journey! Make sure to verify professional credentials and research them before hiring. Avoid disclosing personal information through insecure channels, like text messaging, or with individuals you are not familiar with. Lastly, when in doubt, seek professional guidance from trusted real estate agents, lawyers, or financial advisors. 

Staying vigilant throughout the home-buying process can save you from financial heartache and protect your dream of homeownership. By recognizing the red flags of mortgage scams, securing your personal information, and verifying the legitimacy of professionals, you can navigate this exciting milestone with confidence and peace of mind.

When you are ready to start the homebuying process, get in touch with our team of local lenders at Coastal Custom Mortgage. Our lenders can guide you through the process and ensure you feel confident every step of the way.