Avoiding Mortgage Fraud

These days it seems you hear about fraud everywhere. Identity theft is on the rise, and the mortgage industry has been hit as well.

So how can you protect yourself?

First of all, shop around and compare quotes from trusted brokers and lenders. This is yet another reason why you should go with certified upfront mortgage lenders, because they have to maintain a high level of ethics.

Don't be afraid to ask questions. "Why is that fee so high?" "Is that the best rate you can give me?"

Often times lenders won't give you the best deal up front, but will be willing to negotiate in order to earn your business.

If shopping online, only visit trusted and established sites where you don't have to worry about security issues with your private information.

Also, never, ever sign any document if it has any blank spaces. This is a sure fire way to quickly become a victim of mortgage fraud.

Be weary of private investors, or anyone offering to pay you substantially more than the home is worth. This doesn't always mean fraud, but it should raise some alarm bells.

Educate yourself before you even begin researching loans. Know your credit score. Know how much debt you have. Know how large of a loan you can afford. An educated buyer is much more likely to get a better loan than someone who jumps on the first loan offered to them.

Above all, only get quotes from lenders that you trust, and use common sense. If something sounds fishy it's okay to ask questions or refuse the offer.