Mortgage Scams To Watch Out For

Whether you are looking to buy a home or refinance an existing mortgage it is helpful to be aware of potential scams and pitfalls to avoid.   As with anything involving money too many con artists are willing to put in effort to separate you from your hard earned money.  This article looks at some common mortgage pitfalls and/or scams that could end up costing you more money than it would normally.

Fake Mortgage Lenders

Most mortgage lenders are required to be registered with Nationwide Multistate Licensing System & Registry (NMLS) which keeps a record of all licensed mortgage providers.  The NMLS does not issue or revoke anyone’s mortgage license but keeps track of individuals with mortgage licenses so as they work with different organizations in the industry they are tracked.  In fact lenders can be looked up by their names on the NMLS Consumer site.  With the NMLS Consumer site any information related to the person being looked up is self-reported.  Lenders who have had their licenses revoked by their state for whatever reason will be reported as having a suspended license.  If you have any doubt about a particular lender ask for their NMLS number and look up their information.  With as many legitimate lenders that are out there, if one makes you feel uncomfortable then look for another lender.  No one particular lender is going to have the magic formula to suddenly cut your interest rate in half or prevent you from being foreclosed...