Buying a home is a huge milestone. Unfortunately, scammers sometimes take advantage of borrowers during the mortgage closing process. Don’t let fraudsters mar what should be an otherwise exciting experience. Here’s what you need to know about mortgage wire fraud and how to protect yourself.
What is mortgage wire fraud?
When you close on your mortgage, your lender will request that you wire your closing funds to them. Scammers know this and may try to send you false communications to try and trick you into wiring the money to a fake account they have created instead as part of their mortgage wire fraud scam.
Also referred to as real estate wire fraud, mortgage wire fraud criminals may use common scamming methods in their ruse such as fake phishing emails, spoofing a phone number and creating a false sense of urgency.
What is a wire transfer?
A wire transfer is a method of sending money from a person or business to another person or business. When it comes to the mortgage process, lenders will request that you send funds for closing via a wire transfer. It’s always wise to talk with your lender about their specific process to ensure you are wiring your funds to the correct recipient and ask them what you can expect from them.
Tips to protect yourself against mortgage wire fraud
The best way to protect yourself against mortgage wire fraud is to be proactive. Fraudsters know that you may be excited to finally close on your mortgage and they are hoping to dupe homebuyers who in this heightened state. But there are signs to look out for when it comes to your closing wire request.
Understand the closing process
When it comes to closing on your mortgage, we want to make sure you don’t have any surprises. Make sure you talk with your loan officer about what you can expect before, during and after you close on your loan.
You can expect your PrimeLending loan officer to securely email your closing disclosures at least three days before your closing. This will include details about your loan terms and conditions, as well as a list of the costs and fees due upon signing. If you have questions about your closing disclosure, be sure to reach out to your loan officer.
Clarify contact information
During the closing process, make sure you have the right name, phone number(s), email address and any additional contact information for everyone for involved. That can include your loan officer, lender, real estate agent and any other professionals you have spoken to during your mortgage journey.
Pay attention to the details
Whether a scammer attempts to defraud a homebuyer through email or over the phone, there are clues to pay attention to that may tip you off that something isn’t right. Some telltale signs to look for in these communications are:
- If the company name or mortgage professional’s name that you have been working with is spelled incorrectly, that could be a sign that the communication you’ve received is from a scammer.
- Pay close attention to the information you’ve previously received. If you receive a communication and the account or personal information seems wrong, cross-check it with communications your lender provided you.
When in doubt, always contact your loan officer about suspicious communications before doing anything else. It is better to err on the side of caution and reach out to your mortgage professionals to confirm whether or not the communications you’ve been sent are real.
Buying a home should be an exciting, happy experience. Our mortgage experts are always available to answer your questions about the closing process and other mortgage-related questions. Reach out today to learn more.
