Mortgage Closing Scams: How to Protect Yourself and Your Closing Funds
Closing on your house is the final step toward homeownership. However, this exciting time can quickly become stressful if scammers con you into a phishing scheme. Here are some ways to identify a closing scam and protect your assets from scammers.
Types of Closing Scams
Scammers recognize how large the real estate market is. If they manage to get hold of your contact information, scammers posing as your realtor or mortgage lender will send you fake emails with false instructions on how to pay your closing costs. Instead of paying the correct party, you could accidentally forward hundreds or thousands of dollars to the wrong account.
Protecting Your Closing Funds
There are several tips to avoiding phishing schemes. During the closing process, you should:
- Solidify identities and protocol: Before you close, identify two trusted individuals who can confirm the process for transferring money. Write down their contact information so you have it on hand.
- Confirm instructions: Before you transfer money, verify the instructions you receive over the phone or email with your trusted individuals. That way, you'll be able to confirm they're the ones who sent the instructions.
- Don't exchange sensitive information over email: Avoid using contact information, such as phone numbers or links. If a scammer is able to read your emails, they can replicate the information and con you into trusting them. It's also never a good idea to send financial information over email; it's not secure and could compromise your finances.
- Know what your closing costs are: You will receive a Closing Disclosure that should match your initial Loan Estimate. Make sure that your closing agent provides you with a balanced disclosure before transferring any money. If the information looks incorrect, verify it with your team.Â
Secure Your Mortgage with Butler Mortgage
For a safe and reliable mortgage process, trust the individuals at Butler Mortgage. We've worked with first-time and seasoned buyers in Florida for more than 25 years and are proud to expand our services to Georgia. Call 407-931-3800 or fill out our free online consultation form to get started today.
