Oh boy, with the market doing its "thang" it seems that the unscrupulous lenders/agents/(fill in the blank) are coming out of the woodwork! I put together a list of "rules" for my buyers and thought I would share them...
Mortgage fraud can occur whether the market is swinging high or low, if there is the potential of money to be made there is the potential of money to be stolen... and fraud is theft!
1. Go to a reputable lender. Ask around, request referrals...
2. If it seems too good to be true...it probably is. (an oldie but still a good rule.)
3. Ask questions, if the lender is uncomfortable with answering any of them, go someplace else! The answer can be "I don't know, but I will find out" that's OK, as long as its honest.
4. Consider this; If they are willing to lie for you, they are willing to lie to you.
5. Use a REALTOR®! Seriously, our Code Of Ethics enjoins us to "Prevent fraud", and we have experience with many different lenders and circumstances, we can usually tell when something is "off".
6. If your lender is uncomfortable with your REALTOR® or builder or auntie or whomever, sitting in on your conversations, don't walk away...RUN!
7. If your lender insists that you sign docs only at their office and will not allow it to be done at the escrow/title companies office, again, Don't walk...RUN!
8. If there is any squabble or delay about a good faith est., or any question that they stall on answering, any Attitude at all... leave. You are paying this Person a considerable amount of money, they are not doing you a FAVOR, its their job and you have hired them to do it correctly. They have accountability to you!
9. And finally, you will receive a "Final HUD Statement" READ IT! And then ask questions, if the lender wont or can't answer them, cancel. If there is any financial agreements that do not show up on the Final HUD, cancel. (Check first, it may just be a oversight or a honest mistake, it happens).
10. Take responsibility for your own finances, buying a home is most people's largest and most important expenditure in their entire lives, protect yourself. Practice Safe Borrowing!
Any one of these is a red flag, more than two is a warning sign that you need a new lender...
Geographical areas are being downgraded...making it more challenging to put deserving families into much needed homes, why? Not because of economic conditions...because of fraud! Do us all a favor, if you experience fraud or know of a fraudulent practitioner...report them! Turning a blind eye only encourages these "bad apples" to continue ruining the entire barrel for us all.
Aloha~
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