The most unheard of yet most common fraud in the real estate industry is mortgage fraud. Mortgage fraud could be committed by either the seller or the buyer. There are many types of mortgage fraud. With mortgage fraud, sellers could rob the customer of almost all their income. However when buyers commit mortgage fraud, they usually get caught easily. To avoid mortgage fraud, here are some tips and information that could help you.

Buyers Beware

• Read everything before signing. You don’t want to get caught up in a huge crisis because of one mistake, so read EVERYTHING before you sign. Don’t forget to read the fine print. Some buyers might feel intimidated or rushed to sign but at the end it’s you who calls the shots. So don’t risk your life’s earnings by not taking the time to read.
• Check their registration. Make sure through other baltimore home mortgage brokers and lenders that the lender is registered and has a legal license to practice his field.
• Beware of lenders offering more money. Stick to the value you’ve asked for. All this will benefit the lender, not you. This is only a scheme to empty your pockets as quickly as possible.
• You have the right to choose your own mortgage lender. That’s right. Your mortgage broker may recommend and insist you to use a certain mortgage lender. Remember, you are not obliged to work with the lender of your mortgage broker’s choice. Many scams include two or more parties. For example the appraiser, the mortgage broker and the lender could all be in on one scheme. Brokers are there to only help you to choose a mortgage lender not to force you to use one.
• Ask and get photocopies of all documents! You should have all signed document photocopies. The majority of people don’t even ask and mortgage lenders and brokers hardly provide it themselves.
• Don’t feel pressured to make your choice. You should not feel rushed into getting a mortgage. Real mortgage brokers and lenders make sure you feel comfortable in the choice you’re going to make before making an agreement.
• If it sounds too good to be true, leave it. Most likely it’s a scam so lower your expectations on a perfect mortgage and continue hunting for the mortgage that best suits your needs.

Sellers Be Careful

• Check that all fields are filled out. There should be no blank fields. Read the full application to see if any questions have been partially answered. 
• Confirm client’s identity. There has been an increasing amount of identity theft cases worldwide. Make sure you have the right person and correct address.
• Question the client thoroughly about everything. Ask about where he works, what he does there, how he got it etc.
• Get many reference numbers. It’s a good idea to get as many reference numbers as you can. Make sure they provide you with their own and spouses work numbers.
• Check the property. Check if the client really owns the property or not. He or she could be an investor trying to hide investment purposes to get a lower interest rate.
• Don’t help clients buy the property. Never use your name or SS number to help a client buy property.
• Read everything before signing. Just like the buyer, you need to feel secure before agreeing to anything.
• Talk to an attorney. An attorney can help you make the right decision on giving the baltimore mortgage loans or not. They have extra knowledge on things that you might not know.
• Get all closing documents. This will confirm that the client owns the home or property.