Your real estate transaction, though often time-consuming and intricate, typically concludes without a hitch. However, as with any industry, real estate is not immune to instances of fraud. Here are some valuable tips to help you steer clear of situations that may not be in your best interest.
Mortgage fraud is a common concern. When seeking a mortgage company, start by seeking a referral from a reputable Realtor. Even if you feel comfortable, thoroughly read your mortgage document and have a real estate attorney review it. Honesty is paramount when completing your loan application; providing false information can lead to complications. The most common cases of mortgage fraud are committed by either someone in the industry or by the borrower. If you’re searching for a mortgage company to deal with, the first step is to ask a reputable Realtor for a referral. Even if you’re comfortable with the situation, you will still need to read your mortgage document from beginning to end, and you’ll want your real estate attorney to review it as well. Collaborate with your Realtor to scrutinize the credentials of any chosen mortgage company. For added security, seek legal counsel to review any documents that appear unclear. Finally, be completely honest when filling out your loan application. Providing false information can only lead to trouble.
Wire fraud becomes a risk when large sums of money are in transit. Prioritize working with people and companies with impeccable reputations. Conduct your business from a secure system, and if there’s any doubt about the identity of the person on the other end of a transaction, confirm their identity before proceeding with financial transactions.
Credit fraud poses another significant threat, as evidenced by incidents such as the Equifax breach that exposed data from 145 million Americans. Safeguarding your credit file with major bureaus like TransUnion, Equifax, and Experian is a simple yet effective preventive measure. The brief process on each bureau’s website provides peace of mind, and the unfreezing procedure when needed is equally swift during mortgage or car loan applications.
Identity theft is on the rise and has become the most frequent form of fraud. To minimize the risk, exercise caution about what you share on social media. Prefer using a credit card over a debit card, and limit the use of checks, which contain substantial personal information.
For more comprehensive information on real estate fraud and tips to safeguard yourself from becoming a victim, reach out to The Olear Team today!