It is a reality that mortgage scams are frequent events these days. Many people are falling victims of such scams. For many people, a mortgage is the biggest purchase they will make in their life. So, it is essential that you pick the right Kelowna mortgage advisor. If you want the best Kelowna mortgage broker, let us take care of your needs. In addition, we suggest that you consider the following advice to avoid mortgage brokers scams.
Know the common scams
If any broker asks you to reveal your personal information for providing some particular service, then you should be careful. If a broker guarantees you a low-interest rate without knowing your financial condition or credit score, then you should be careful that there is a catch or something fishy about it. You shouldn’t fill out forms that require personal information or give brokers any fee so that they can start processing your files. These are signs of scams. Scammers try to steal your identities such as your name, address, Social Security number and date of birth. You should be cautious before you give away any of your personal information to any broker.
Don’t pay fees upfront
Scammers usually ask you to pay a fee upfront so that they can offer you a mortgage. They might even tell you to pay a certain amount regularly so that your interest rate stays low for a long time. You must remember that it is illegal to ask for money upfront before providing a service. So, until the broker has done their job, you shouldn’t pay them.
Check authorization of the broker
You must check whether the mortgage broker is authorized or not. You can contact offices where dealers need to register their firm. You can also check their website to check whether they provide legitimate service. You can ask for contact details of their previous clients and inquiry the past clients about the broker. You should check their credentials, such as years of experience, employees, etc.
Excessive loan costs
The mortgage expenses are ‘fixed’ no matter how much you borrow. Your closing cost of mortgage should be between 2% to 5% if you borrow $150,000 or more. Otherwise, costs may be more than 5%. If the expenses go beyond 5%, you should be suspicious. Talk to several lenders before you finalize your deal with the broker.
Scam cases are increasing day by day. The primary reason people fall for it is due to lack of knowledge about the mortgage procedure and the approval process. Now there are many sites where you can find detailed information about the mortgage process, fees, etc. You should thoroughly read them before you go to a broker. You can also ask a representative from your bank about various issues regarding the mortgage. Your mortgage is a huge investment. You should take all the measures not to lose your valuable money in any scam. We are considered as the most experienced group of Kelowna mortgage brokers and we are here to help. Call us today to know if your agent is on the list or not.