How to Identify a Legit Mortgage Lender?

Scammers are all around the world. So you need to be vigilant in the company you trust. Trust is something you build through communication and excellent customer service. However, you can break this quickly, especially when one does fraud.

How can you trust someone you just met? What are the signs that this mortgage lender company is not legit? These are some of the logical questions everyone is capable of thinking. But many homeowners are still falling under the traps of professional swindlers ending up with piles of debt or worst losing their homeownership. This article will guide you on how to identify a legit mortgage company.

Do not ask for advance payment requirements.

A lot of people say money is one of the sources of evil. Well, it’s true. People will lie, cheat, or even kill each other for money. It is sad but true. Same in real estate, money plays an essential role in a home loan.

If the loan company asks for any advance payment, then it is a red flag. You are applying for a loan because you don’t have enough funds. Legit companies will disclose fees, but they will not ask to get it right away. They will deduct them from your loan amount once you receive it. Professional and legitimate mortgage companies are also transparent. They will explain why you need to pay for this and that amount. Ask if there are hidden charges.

You can check the company under the Better Business Bureau.

BBB or Better Business Bureau is a database where you can search for the company’s information. You can check most legit businesses under its website. If you’re not sure about their company profile, you can search for the company’s name. The type of business, website URL, email, and phone number can also be found in that database.

The results are overwhelming sometimes. However, you can narrow the results by including your state or postal code. In this way, the lists of the company are those who are near you. Check for a more accredited member using the BBB database.

Good Read: How to Find Legit Mortgage Lenders

Listen to word-of-mouth from past clients.

Word-of-mouth and recommendations from trusted people is another way. It is said that word-of-mouth is one of the best advertisements in finding a legit mortgage lender. One client could make or break your trust.

Listen and ask past clients on their feedback. You will know if they’re genuine. Word-of-mouth is shared directly by someone who knows how the company works. Verify if they are legitimate. You can also ask them what to expect and how the process works. Compared to false advertising shown in billboards and televisions, client’s feedback is real.

Check for online reviews and visit their website.

We’re living in a technological world where most of everything we want to know is on the internet. You can search and read different websites about mortgage lenders. These websites give reviews and educate you to make the right decision. Just make sure that these reviews are from an independent party and not biased. If they are working for anyone else, their articles are tricky.

Below the article, you can read the comments from different people. It is the place where you can read various perspectives on home loans. In the comment section, you can read real people, giving company ratings. They might sometimes give you a confusing perspective, but at least you have an overview of the company. Also, check the mortgage lender’s website and social media accounts if they have a digital presence. Scammers are not fond of going public because their tricks might get busted. So weigh things carefully and do your research before you commit.

Consult a Property Lawyer

Mortgage fraudsters have been victimizing thousands of homeowners for the longest time. Consulting a property lawyer is important especially when you are using your home as a collateral for your loan. Discussing more about mortgage fraud, the common cases are identity theft and falsification of legal documents. That case is more applicable if the lender is the victim. For homeowners who want to borrow money, there are also predatory lending activities that can lead to foreclosure of their properties. A property lawyer can help you review any commitment like contracts and legitimacy of a mortgage lender.

About the Contributor: Mr. Lawrence J. Friscia, III (Senior Partner & Founder)

Mr. Friscia began his legal career working on complex private equity M&A transactions for the New York City law firm of Schulte Roth & Zabel. Mr. Friscia left the world of Big Law in order to devote himself to a more client-centered practice in which he could directly impact the lives of individuals struggling to survive the current economic crisis. Consequently, Mr. Friscia founded Friscia & Associates LLC (the “Firm”).

Mr. Lawrence Friscia’s practice focuses primarily on foreclosure defense, short sales, real estate closings, bankruptcy, and business law. As a native of New Jersey, Mr. Friscia takes a special interest in his foreclosure defense and modification practice, as it offers him the unique opportunity to help keep members of his community in their homes. As the Firm has grown, Mr. Friscia remains dedicated to the principle of personal attention and close client contact. With this in mind, he is personally engaged in virtually all of the Firm’s active matters, ranging from foreclosure defense cases to residential closings.

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