What items in a mortgage transactions have higher risk for fraud?
Often people are not doing anything wrong but different aspects of their mortgage transaction will make a lender look more closely at what they are doing. Because sometimes what you are doing is at a higher risk of fraudulent transactions.
So what are some items that can raise red flags for lenders?
- private agreement of purchase & sale
- quick closing (less than 1 month)
- high ratio mortgages
- equity gifts/vender take backs
- extra deposits in bank accounts
- power of attorney transactions
- recent activity on title of the property (like a recent transfer or sale)
- if any funds are going to third parties
- property free and clear
- vacant land or investment properties where the owner is not present
This doesn't mean that you can't do these things. It really just means that lenders will look a little closer at your documents or sometimes ask for additional proof that we are not committing any type of fraud.
We always work with you to make sure that we can explain the situation so that it makes sense and offsets the lenders risk.
If you have a question about any of these types of mortgages or anything mortgage related please drop me a line at email@example.com