Mortgage offers a lifeline in helping people buy their dream homes. The flexible paying plans always beat the pay in cash method which sees more and more people getting away from it. In trying to purchase your dream home and live your best life, one might be tempted to undertaking unethical issues to cut themselves the best deal.
Mortgage fraud can be facilitated by both parties involved in the homeownership process. That includes the lender and also the borrower. It can be termed as a fraud once either or both the lender and the borrower omit key facts and figures regarding the deal. While striving to find yourself the perfect home it’s significantly important to avoid being the victim or perpetrator of mortgage fraud.
Here are a few types of mortgage fraud schemes to avoid.
• Occupancy fraud – this is whereby the mortgage applicant provides false information regarding his true intention with the property. They claim the property would be their permanent residence yet they plan to rent it out.
• Home appraisal fraud – it requires both parties to participate and it involves illegally inflating the value of the property.
• Employment income fraud – this occurs when the applicant provides false income to get more mortgage funds.
Want to avoid this kind of mortgage fraud? Here are a few ways to do so
Be honest on your mortgage application
Providing accurate information on your mortgage application goes a long way in protecting your assets or providing you with a date with the authorities. You might be forced to repay the whole loan and in some cases, the lender would have to take back your home.
Read and understand every document before signing
The excitement of purchasing a new home might sometime bring forth a lot of pressure and naivety, therefore, blinding you from key facts on the documents. It’s essential to have a deep look into the documents and seek advice clear any doubts. Don’t sign anything until you’re comfortable enough to do so.
Inspect the property
Have a property inspector of your choice thoroughly inspect the property. That might lead to uncovering of some underlying damages may be missed or hidden by sneaky sellers. That helps you get the best mortgage deal in terms of paying for the true value of the property.
Do intensive research or get referrals
Buying a house is a big deal and shouldn’t be taken lightly. It is only fair for you to do intense research before committing or getting referrals from friends and family who have been there before. It comes in handy to talk to someone who has been there before.
In a space that contains a lot of honest mortgage providers and the opposite alike, it’s important to be extra cautious to avoid falling into such traps.