Skip These Scams During Your Mortgage Process
Applying for a mortgage is complicated. Not only do you have a lot of paperwork to sift through, a lot of it is likely written in a jargon with which you are likely unfamiliar. Not only does that make obtaining the home loan you need more challenging, it can also set you up to get scammed. So you can avoid an untrustworthy lender, watch out for these common mortgage scams.
- The Promoter. A lot of lenders will use social media to promote themselves; that is just good marketing. The problem is that many also advertise certain loans with certain parameters (e.g. percent down, payment amount). Never assume the loan you get from that lender will actually deliver on what is advertised; always do your homework.
- The Dawdler. Under mortgage regulation, your lender is required to give you a Good Faith Estimate (GFE) within three days of your mortgage application. If your lender takes longer than three business days to get you this information, they are violating the Truth in Lending Act. This is a fairly new regulation and some lenders are slow to get on board, but it is better to work with a lender who is keeping up on the law to ensure your mortgage is legally compliant.
- The Helper. Is your lender recommending third party vendors to help with your home buying process? It might seem like they are just being helpful, but some lenders have worked out relationships in which they receive compensation for referrals. This is actually illegal. If your lender is sending you to an affiliate, make sure they are not financially motivated.
Want to work with a lender who will not only be free from their own scams, but can help you spot scams in other areas of your home buying process? To gain good counsel during your mortgage application, contact Ranch & Coast Mortgage Group Inc. Serving Solana Beach and the surrounding California area, we are here to ensure you get the right mortgage so you can get the right house, scam-free.