ABC World News: Felons in the Mortgage Business

By Chris Williamson · August 1st, 2008

ABC World News You may have seen the piece on ABCNEWS a few nights ago “Felons in the Mortgage Business.” If you did, I am sure after watching it you are probably about as ready to trust us as you would be to leave your pet canary home with a hungry cat.

If you are ready to buy a home, you are probably wondering ‘How could this type of scam happen?’ ‘What should I be looking for?’ ‘How can I make sure this doesn’t happen to me?’

Well, aside from the general rule ‘if it seems too good to be true, it probably is,’ there are a number of specifics ways you can protect yourself.

Google the broker and the company, look on Yelp and LinkedIn – see what their reputation is.
Get referrals from friends and family – use someone they trust.
Receive and review your Good Faith Estimate and a Truth in Lending Statement that shows rate and the associated costs in getting the loan- ask questions until you are comfortable.
Read everything you sign, no matter how long and tedious. All the paperwork associated with your transaction may seem like a lot, but going to court later is even tougher.
If you are unsure about the lender you have chosen, take the time to ask questions and compare with other lenders – anyone who tries to rush you into something without allowing you opportunity to shop around is not the right person.
Most importantly, when you are shopping, make sure you are shopping for more that just rate. To learn what specific factors you should consider, visit my Mortgage Shopping Guide.