Purchasing Or Refinancing A Home? How to Play it Safe

When it comes to purchasing or refinancing a home, you want to play it safe because mortgage fraud is something you definitely don’t want to get caught up in.

Mortgage fraud takes places when a person intentionally provides erroneous data on a loan application in a bid to get a mortgage that he or she probably would not have qualified for had he or she entered accurate information on the loan application. You need to be aware of this sort of crime so that you don’t fall prey to con artists.


What is Mortgage Fraud? 


Various sorts of mortgage fraud exists. One very popular one involves a criminal finding an unsuspecting person with good credit to serve as a so-called straw buyer. As part of this scheme, the crook will seek to have the straw buyer place his or her name on the home mortgage form. The con artist may, in exchange for the straw buyer’s assistance, promise to pay a sum of money or offer some other incentive.

Although the promised payday may prove alluring to the straw buyer, the truth of the matter is that the straw buyer will be the one left to shoulder responsibility should the mortgage default. If it’s proven that the straw buyer understood that he or she will fully engaged in fraudulent activity, he or she could be forced to cover any post-property sale shortfall, and could also be dealt criminal charges.

How Can You Remain Safe From Mortgage Fraud?

Fortunately, there are plenty of ways to steer clear of mortgage fraud. For example, you should refuse to accept any payment or reward offered to place your name on a mortgage application unless you plan to buy the property in question.

Another tip is to work only with real estate agents and other industry professionals. You also need to, among other things, keep your personal information private. Nefarious people who have access to your personal information can potentially use ID theft in order to commit mortgage fraud — without your knowledge.

Don’t fall victim to mortgage fraud. When purchasing or refinancing a home, be sure to go through the proper channels to get your business taken care of properly. If you work with industry professionals, steer clear of too-good-to-be-true offers from potential con artists and guard your personal information. This way you’ll be able to safely purchase or refinance your home.

source: northwoodmortgage.com

Mortgage Refinance Myths

Qualifying for refinancing is difficult. It isn’t necessarily easy for anyone, even with a good credit history. Nevertheless, refinancing your mortgage can be done, as long as you are eligible. By knowing the facts and avoiding the myths, you can better your chances of qualifying for a mortgage refinance.

The Biggest Myths

• Refinancing doesn’t come at any extra costs.
• You can’t refinance because it has been too long since you applied for refinancing or a mortgage.
• You will be losing equity or building equity will be a slower process.
• You have poor credit, so you can’t refinance.
• You will have to start your loan all over again.
• You must refinance through the same banking institution.
• You should own your home for many years before refinancing.
• It isn’t worth it to refinance.

Mortgage lenders and brokers hear all types of misconceptions while they are talking to their potential clients. Allowing these misconceptions to stand in the way of you refinancing can hinder both your financial state and the state of your current mortgage, which is why it’s best to learn about these common mortgage refinancing myths.

If you are unsure if refinancing is a right decision for you, consult with an expert. In most cases, refinancing is a wise choice. Nevertheless, it isn’t for everyone and you will want to learn more about what refinancing entails before you decide to apply. Refinancing could very well lower your interest rate and make it easier for you to pay off your home quicker.

Very rarely will you have to worry about paying any out of pocket expenses for refinancing. Nor will you have to be concerned with prolonging the amount of time it will take to pay off your refinancing loan. The purpose of refinancing is to shorten that timeframe and to focus on paying off the home even sooner with a lower interest rate. Prior to applying for refinancing, make sure you pay attention to the average percentage rates during the time. Always apply when the rates are low.

The benefits of applying for a refinancing loan greatly outweigh the cons. You could end up saving a lot of money as long as you play your cards right. Remember, you don’t have to go through the same banker to refinance although it may be the quickest way considering the bank will know your ability to pay the payments on time. For more information on how you can save through refinancing, contact Northwood Mortgage today.

source: northwoodmortgage.com