Posted on: 21st Jun, 2011 01:31 am
Hi there… I'm a first time home buyer. So, I applied for mortgage with one of my local lenders. But after signing the application, I've noticed that there are mistakes or chance of possible fraud. What can I do?
Hi Alex,
It is good that you found the mistakes at the time of signing the documents. I hope you havent closed the mortgage yet. You should immediately contact your mortgage provider and inform him about the mistakes on your application. You should ask him to take steps so that these errors/mistakes can be corrected so that you can submit a new loan application. If the lender is not responsive to you, then you need to send a traceable letter to the lender with the corrections clearly itemized, and keep a copy for yourself.
Take care
It is good that you found the mistakes at the time of signing the documents. I hope you havent closed the mortgage yet. You should immediately contact your mortgage provider and inform him about the mistakes on your application. You should ask him to take steps so that these errors/mistakes can be corrected so that you can submit a new loan application. If the lender is not responsive to you, then you need to send a traceable letter to the lender with the corrections clearly itemized, and keep a copy for yourself.
Take care
If you feel that you are being defrauded or the victim or predatory lending or just have a bad feeling, RUN...The housing collapse exited many of the talented loan officers as well as the theives, but the thieves are still lurking around. Recent legislation changes has made it very clear what loans can fund, and which one cannot be approved. Every loan agent is to be licensed with NMLS. Contact your agent and ask for his NMLS # then check it against the NMLS site, just google the phrase: NMLS consumer access.
If you signed it already, you have to deal with your local lender about the mistake you found. Don't hesitate to ask them it is your right to understand the process of transaction. Visit these sites for you to know more about home loans.
The signing of an application for mortgage does not bind you to the transaction with that lender. You can walk away slowly, run as fast as you can, or mosey if you wish. I'd bring it up with the lender and question their ethics (if need be) and standards, but I'd be sure to check in with another lender to arrange my financing if I had any questions about the methods used.
It would be interesting to know what it was that you found and what and where were the possible mistakes?
This could all be just a misunderstanding on your part or there could be something more serious going on but no way of telling without further details.
This could all be just a misunderstanding on your part or there could be something more serious going on but no way of telling without further details.
Good question, Jim.