Mortgage fraud is a broad term and one that can refer to a number of illegal activities. In one sense, it is the omission or falsification of information on a loan application in order to obtain funding in an instance in which it might otherwise be denied. As it affects homeowners, however, this type of fraud can include predatory lending practices that target specific buyer demographics and efforts on the part of financial professionals to alter, omit or misrepresent important details about a client’s financial status or funding needs. These are actions that are taken to increase personal profits from these transactions. Following are several things that Boston condo buyers can do to protect themselves from this latter type of mortgage fraud.
Carefully Review the Loan Application
Before signing a loan application, make sure that all of the blanks have been filled in and that all of the supplied information is correct. If there are blank spaces on a signed document, an unethical individual may use these to insert falsified information. These blanks can be used to change the amount of interest you’ve agreed to pay, the amount you wish to borrow and even the terms of the interest rate, such as whether or not it’s fixed or adjustable.
Know Who You’re Working With
It is also important to avoid submitting an application to any party who has shown signs of fraudulent behaviors in the past. For instance, you may be encouraged by a mortgage broker to falsify or exaggerate your income in order to increase your likelihood of funding approval. Whenever suggestions like these are made, you should immediately sever ties with the broker and start looking for a new professional to work with.
Be Aware of False Advertising
Surprisingly, there are a number of ads that promise to utterly erase bad credit so that prospective borrowers can submit their loan applications with fresh, clean and absolutely appealing financial profiles. Remember, building good credit takes time and any professionals within the mortgage loan industry who tell you otherwise don’t have your best interests at heart. Reputable, ethical professionals always offer sound advice and never encourage their clients to cut corners or bend the truth.
Working with a reputable real estate brokerage in downtown Boston is another way to protect yourself and your investment. For more information, give us a call at 617-595-3712 and schedule an appointment today.
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