How to Stop Mortgage Fraud Before It Starts

Buying a home is exciting, but scammers are getting smarter. Protect your money and your identity with a few simple checks so you can focus on the keys, not the red flags.

Spot the common scams. Identity theft, occupancy and income misstatements, inflated appraisals, and straw buyers create fake pictures on paper, you can avoid them by verifying every claim and never sharing personal data by text or DM.

Work only with verified pros. Confirm your lender’s NMLS number, check your agent’s license, and search for complaints. If a consultant promises guaranteed approvals or foreclosure rescue, walk away. Real help explains risks, costs, and timelines in writing.

Lock down your information. Use strong passwords, enable two factor authentication, and send documents only through secure portals. Freeze your credit if you see suspicious activity, and monitor bank statements weekly during the loan process.

Trust the paper trail. Compare the loan estimate, appraisal, and closing disclosure line by line. Ask about any fees you do not recognize, confirm wire instructions by calling a known number, and never rush a signature you do not understand.

Know when to pause. Pressure to move fast, requests for upfront cash to a third party, or instructions to lie about occupancy or income are all stop signs. If something feels off, get a second opinion from your lender or a HUD approved counselor.

Stay curious, stay cautious, and keep your documentation tight, the right habits make you a tough target and get you to closing with confidence.

This article draws on insights from "From Identity Theft to Straw Buyers, There Are Many Facets to Mortgage Fraud" published on Homes.com: https://www.homes.com/learn/from-identity-theft-to-straw-buyers-there-are-many-facets-to-mortgage-fraud/