They never fail to surface once real estate activity shifts into high gear: the Costa Mesa home loan scam operators. They seem perpetually ready to pounce on unwary would-be home buyers—notably those who are unfamiliar with the standard procedures employed by established mortgage lenders in the normal course of preparing a legitimate Costa Mesa home loan or refinancing package.
Falling prey to an unscrupulous mortgage scam can result in anything from inadvertently divulging personal information all the way to significant monetary losses—including home title fraud that takes expensive and time-consuming legal action to correct.
One simple way to protect yourself from some of the common home loan scams is to acquaint yourself with signs that an offer probably isn’t on the up-and-up. If you see any of these bullet-pointed red flags, it’s time to find out more about who you are really dealing with—or simply to hit the exit:
- The lender isn’t particularly interested in your ability to pay. A lender who proposes monthly payments that exceed 28% of your gross income fits that category.
- If the phrase “bad credit doesn’t matter” appears in an operator’s advertising or communications, get rid of them.
- If a lender encourages (or even hints at) “fudging” the numbers on your application, drop them. The simplest “fudge” constitutes mortgage fraud, which is a crime—and legitimate lenders don’t tolerate it.
- If the cost of a loan for less than $150,000 exceeds 5%, find out why. Most home loan closing costs range between 2%-5%.
- No GFE. Lenders are required to provide a Good Faith Estimate of the loan costs within three business days of receipt of your application. Failure to do so is a red flag.
- If the final loan documents show closing costs that differ significantly from the GFE, check the Consumer Financial Protection Bureau’s website to judge whether the changes are legitimate. The CFPB is a government bureau that makes sure you’re being treated fairly.
This warning sign list isn’t exhaustive, but any offer that fits the “Too Good to be True” definition likely belongs on it. As with all Costa Mesa home loan dealings, applying your own good judgment is always a good place to start—as is giving us a call from the get-go!
We are built on a philosophy of Heritage & Hustle. The L3 is a full service real estate agency with a regional office located in the heart of #CostaMesa, offering a wide-array of custom services to meet their clients’ needs with roots in the community since 1976. It’s L3 mission is to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. The L3 was originally formed to offer personal, concierge-level service as an alternative to the large, nationally based real estate companies. From its small beginnings of only two employees, The L3 has grown to a full staff of 25 serving over 300 clients a year. The L3 is not limited to serving just its clients; it is also committed to serving the community. Not only has The L3 donated hundreds of hours to many area charities, they have also received the prestige of being named one of the #toprealestatecompaniesinCostaMesa If you’re interested in #buyingorsellinginOrangeCounty, turn to the experts. Turn to The L3 and let them help you make your real estate buying or selling dreams come true. For more information or to get started on finding or selling your home contact The L3 today at 714-444-4663 or email us at firstname.lastname@example.org
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