The transition from being a renter to becoming a home owner is exciting, but comes with it's share of risks. Most new home owners apply for loans to assist with the costs associated with purchasing a home, and this process often puts potential home owners at increased risk for identity theft. This does not have to be the case, however, if first time home buyers take the necessary precautions to protect themselves and their identity throughout the home buying process.
Proactive Protection
Before you even being the loan process, take a look at your credit report and make sure your score and the agencies listed on your report are as you expected and recognizable. Make sure there aren't any agencies reporting to the credit bureau that you aren't aware of.
Add Fraud Alerts to Your Credit Report
Adding a fraud alert will require anyone attempting to take out a line of credit or services under your name to verify their identity. If they are not able to do that, the credit bureau will alert you of the fraudulent attempt to use your credit, which will keep you one step ahead of identity thieves.
Protect Your Information
When your information is in the hands of many different companies, from mortgage lenders to property insurance providers, it's important to be aware of the constant threat of data breach. Criminals have found success attacking large firms to get access at their user's data, which means you should be extra vigilant during this period to ensure your information remains secure even as it's shared with numerous third parties.
Beware of Fraudulent Loan Providers
The internet is a vast information highway and is crawling with thieves and con artists attempting to secure your personal information in order to commit identity theft. Make sure you are entering your personal, sensitive information into secure websites only. If you enter your information into fraudulent loan websites, it can be sold to other thieves around the world. This means your personal information is put in the hands of people thousands of miles away to do whatever they please with it. There are several ways to validate a loan website. Firstly, make sure the URL starts with https://. Also, make sure there is a security certificate by a reputable company in the URL. Lastly, put the company's name in a search engine with the word "complaint" to see if any issues have been reported by other users.
Watch Out For Phishing
Phishing is a popular technique used by identity thieves to gather sensitive information about their victims in order to successfully use their identity. This can be in the form of emails, phone calls, and text messages. By giving away this sensitive information, you will be putting your identity at risk, potentially ruining the good credit you have built up, and hurting your chances of owning a home. Never respond or open emails from an unrecognizable email address, and never give sensitive information over the phone to unverified individuals or companies.
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