The rates of fraud have increased across the globe and when people are making investments, they have to be extra vigilant. Credit card fraud is one of the most common kinds of fraud but in real estate, the high rates are also worrying. Working with a mortgage broker cheltenham can help you avoid mortgage fraud. It’s important that you work with a specialist to avoid such scams.
When Does a Mortgage Fraud Occur?
There are many scenarios whereby mortgage fraud can occur. The first thing that a mortgage broker ensures while working with you is that applications are in order and valid. All the information given is up to date and accurate.
What is Considered Fraudulent?
There are various things that authorities consider as fraudulent and should be avoided at all costs.
- There is a certain percentage of money that is needed as the down payment. This is money that you should not borrow but instead it should come from your savings
- If there is any change in your income, you should communicate the same to the lender same as any significant change in employment. Whether you are quitting or changing jobs, this should be communicated
- Any change in the financial health should also be communicated. Any major change you are making such as an investments should be done without communication with the lender.
They will Ensure Information is Accurate
When you get into trouble due to mortgage fraud, your broker will also be in trouble for submitting inaccurate information. Maybe you made a mistake when stating your financial health or employment. The mortgage broker will clarify the information and verify the applications and documents. They research more on their clients using various methods to ensure that all the information provided is accurate.
They Get Documents from the Source
This helps in a significant way as the mortgage broker will get accurate information direct from the source. For example, when they want to look at your financial health, they will get statements from your bank and employer. They will not tell you to send statements on email or by phone as this exposes you to fraud. They ensure they keep your documents safe once they have them.
Mortgage fraud is something that you do not want to be caught up in. Even when you desperately need money to finance your first home, you should avoid giving inaccurate information just to get a loan approval. Fraud is a crime that could see you in jail and miss out on the chance to own a home. It’s important that you work with a mortgage broker who is knowledgeable about the lender’s policies and the laws governing mortgage loans. They will guide you through and this is the best way to avoid being branded a fraudster.
Due to the risk of being caught up in fraud, mortgage brokers have become quite smart in this sector. They make your documents and applications immutable meaning that no one will be able to change your information.