King bell
VIP Contributor
The best way to avoid mortgage fraud is to do your research. First, get pre-approved before you start looking for homes in a specific location. This will ensure that you can afford the home and make an offer quickly if you find something that interests you.
Next, use a reputable housing agent or realtor when shopping for a house. If possible, meet them in person or talk to someone else who has used their services before agreeing to work with them. Check with the Better Business Bureau and local real estate offices to see if there have been any complaints or legal actions against them.
One of the biggest mistakes first time homebuyers make is not getting pre-approved for a loan. A mortgage broker or bank can help you determine how much you can afford to spend on a home based on your income, credit history and outstanding debts. This is a lot easier than trying to figure out what you can afford while looking at homes, where it will be hard to find properties within your price range. Not getting pre-approved also leaves you vulnerable to predatory mortgage lenders who will try to get you approved for loans that are far bigger than what you could really afford.
Next, use a reputable housing agent or realtor when shopping for a house. If possible, meet them in person or talk to someone else who has used their services before agreeing to work with them. Check with the Better Business Bureau and local real estate offices to see if there have been any complaints or legal actions against them.
One of the biggest mistakes first time homebuyers make is not getting pre-approved for a loan. A mortgage broker or bank can help you determine how much you can afford to spend on a home based on your income, credit history and outstanding debts. This is a lot easier than trying to figure out what you can afford while looking at homes, where it will be hard to find properties within your price range. Not getting pre-approved also leaves you vulnerable to predatory mortgage lenders who will try to get you approved for loans that are far bigger than what you could really afford.
