Leading property portal shares some tips on how to avoid falling victim to mortgage fraud.
Purchasing your dream property can be made easier with the help of the different types mortgages that have been put in place by banks and financial institutions. However, securing a home loan could also become your worst nightmare if you fall victim to mortgage fraud.
Shakib Nsubuga, Country Manager of leading property portal Lamudi Uganda, said: “With the increase in people investing in real estate, there has been an increase in mortgage fraud. Everyone should take extra precautions when getting a mortgage because you stand to lose a lot of hard-earned money if you fall victim to these fraudsters.”
As much as financial institutions are trying to combat the issue, mortgage fraud is becoming an increasingly problem. With Uganda’s real estate market growing fast and people rushing to invest in property, Lamudi Uganda shares important tips on how to avoid mortgage fraud.
Be vigilant and cautious
Make sure you understand everything you are signing. Do not sign any documents that you are not sure about. If there is something you do not understand or about which you have doubts, consult your lawyer or a trusted financial advisor. Look out for any documents that contain blank spaces and hidden costs as they can leave you vulnerable to fraud.
Research and verify all documents and dealings.
Look through all the loan documents to ensure all the information including your name is accurate in order to avoid any kind of misrepresentation which could lead to fraud. If possible, seek referrals for real estate and mortgage professionals from trusted friends and family. This can lower the risk as these people have already interacted with this individual and can vouch for him or her. However, it is advisable to still maintain your guard.
Honesty and transparency
Avoid being pressured into borrowing more than you can afford to repay because this will lead to more damages and debt that might put you at risk. Make sure that you are honest about your finances and what mortgage you can afford so as to avoid any chances of foreclosure. Avoid inflating numbers or giving false information because this is also considered fraud and could create more trouble than you bargained for.
Avoid going through third parties
Purchasing a property involves a lot of paperwork and all this may be tedious and tiresome. However, if you do not have a trusted lawyer or agent make sure that all documents and dealings are monitored closely by you. With hands-on management and direct contact, you will be able to keep an eye on what kind of mortgage and payment you are signing up for.