On today's Equifax Finance Blog, my real estate post deals with one of the unfortunate side effects of a more difficult real estate environment. With people unable to purchase new homes, the opportunity for scams is greater. One obstacle that interferes with purchasing a new home is the home loan application process. Sadly, a scam process that is on the rise is using someone's inability to get a loan to make them more willing to overlook warning signs and become part of a scam.
What can you do to prevent it? Research your lender, don't take their accreditation at their word. If you're confused about a certain part of a loan, ask questions and don't stop asking until you understand the loan completely. Don't let a desire to buy blind you to a red flag.
One of the most common red flags for a home loan scam is when a lender asks for money up front. Scammers can't follow through with an actual loan, they only want money so this will be their top priority. For four more red flags and what to do if you fall victim to a scam, read the full post.
Ilyce Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com, The Equifax Personal Finance Blogand CBS Moneywatch She is Chief Content Strategist at RealtyJoin.com, a community for real estate investors.