Just like all other money industries, the mortgage market has no exception from fraud. For most people, buying a house is the biggest purchase they will ever make. The housing market has alloy of potential. For a business this large you expect some few fraudulent deals here and there. Common mortgage fraud is describes as misinterpretation, or omission by the lender who funds the loan to a buyer. Fraud is very common in buying a home
You should check for undisclosed deals before you purchase a home. Some lenders or home sellers may want to make deals that are out indicated on any signed document by our agency or lawyers. Some deals may involve receiving or giving money to the seller or their gent about issues involving the home. You should be careful about these type if scams. Sometimes, the dealers are looking to benefit from a few extra coins for you.
Look out for some excessive loan costs from your lenders. Some lenders place the loans cost as higher interest rates or other charges without disclosing the information to you. Note that all mortgage rates should be fixed no matter how much money you receive as a mortgage loan. Large mortgages may have a higher interest rate; you should always talk to your lender about different interest rates and costs before making a permanent decision about the home.
Relying in one lender may cost you a lot more than you should spend. Some lenders add some additional charges and interest rates without your knowledge. Check out for some extra fees before paying the full mortgage amount, some lenders impose hidden fees such that you find yourself paying more than the original interest imposed. Additional fees may not apply legally on personal properties and investments.
Another common mischarge is the prepayment. This is the fee charge when you pay your loan too early. Agencies will impose these penalties on unsuspecting buyers. The worst thing about this scam is that you will realise when its loo tale, and if you signed the legal documents you will have to make the payments. Legal action is worth the try but will need a lot of effort. Before signing any documents, ensure you read them all word for word so you don’t miss anything. These penalties should not apply to privately owned homes but are allowed for some commercial properties.
Don’t be too quick to sign deals with lenders who do not care about your credit score and income. They will even offer you a higher mortgage than you should qualify for. When its time to collect the payments and your salary can’t handle the commitments, you will lose the mortgage deal and they will win everything.
Some lenders won’t let the buyers purchase any discount points. Discount points are very useful in clearing part of the interest. They actually lower the amount of interest at the beginning. If a lender won’t allow you to take these points, don’t make any mortgage deals with them.