Avoid fraudulent mortgage schemes

If you are planning to mortgage your property, it is easy to be tempted to go for all those schemes on offer. They seem to be very attractive and flashy. Not only is the loan being offered on the higher side, payback rates and processes seem lenient indeed.

However, do not be taken in by what could be a fraudulent mortgage scheme. This is where the consumer is misled by the agents offering the loan. On the other hand, fraudulent schemes where the consumer deceives to get a larger loan are also prevalent.

There are several types of these frauds such as occupancy, income, employment, appraisal frauds and so on. Interest rates for residential properties are lower than investment properties and the consumer falsely states that the home is for residential purposes.

Before going in for a loan, ensure that the agency is genuine. Look for word of mouth appraisals, online forums, etc. Before signing on the dotted line, ask questions and look for authentic replies. Ask for track records and double check their statements. As the consumer, you will need to provide original bank statements, any liabilities such as credit card debt, proof of ownership, etc.

Read more about lawyer's assistance in case of mortgage fraud