How do I know if a refinance company is legitimate?

Asked by: Angie Dare  |  Last update: July 10, 2023
Score: 4.1/5 (17 votes)

The BBB is a good way to find out if a lender is trustworthy, and it's also a source for customer reviews. Make sure it's registered. Legitimate lenders must register with state agencies before giving out loans. If you're unsure if a lender is safe, contact your state's attorney general.

Can you get scammed on refinancing?

If you're a current homeowner who's hoping to refinance your mortgage, scammers might be targeting you. They'll use email, phone calls, flyers and even direct mail to lure you in, but beware — these scams are designed to steal your money or personal information.

How do I know if Im being scammed for a loan?

7 Signs of a Personal Loan Scam
  1. The Lender Guarantees You'll Be Approved.
  2. The Lender Is Not Registered in Your State.
  3. The Lender Pressures You to Act Immediately.
  4. The Lender Does Not Have a Physical Address.
  5. The Lender Requires Upfront Payment.
  6. The Lender Reaches Out to You First.
  7. The Lender's Website Isn't Secure.

What do I do if I get scammed by a loan company?

If you've been the victim of a loan scam or personal loan fraud, contact your local law enforcement as soon as possible. Notify, also, your state attorney general and the FBI (if the company was from another state or country). The Federal Trade Commission and Better Business Bureau also will be helpful allies.

Why am I getting calls to refinance?

Now, that lender/broker knows your information and that you're in the market for a mortgage, so you get a phone call. This happens on an enormous scale every day, and your information may be sold to several different lenders/brokers, hence the phone calls.

How to Check if a Company is Legit/Worth working for, or a Scam

34 related questions found

Is cash Advance America a legitimate company?

However, this financial services company is not actually a scam. Instead, scammers pretending to be from Advance America have targeted unsuspecting customers in the past. The real company is a legitimate one that specializes in payday loans, as well as title and installment loans, in certain states across the country.

Should you pay an upfront fee for a loan?

Never pay upfront fees for a loan.

A regulated lender will never ask you to do this, no matter your credit score.

Is cash advance safe and legit?

Cash advance loans often market quick cash and next-day (or even immediate) funding, which can sound great, especially for people with spotty credit. But expensive fees and triple-digit APRs can make cash advance loans a risky option that can trap borrowers in debt — so proceed with caution.

Will a mortgage company call you to refinance?

If you already have a mortgage, there's a good chance you receive junk mail on a regular basis urging you to refinance. You may receive solicitations from both your current bank/loan servicer and from a competing lender or mortgage broker looking to acquire your business.

Is it safe to refinance online?

The Internet has become a major source of information on almost any topic. Mortgage refinancing is no exception to this phenomenon. While the web can be safe and a great resource, it's important that you take necessary precautions when utilizing it to refinance your mortgage.

How do you know if a mortgage is reputable?

The Nationwide Mortgage Licensing System & Registry (NMLS) maintains a database of licensed brokers. Additionally, you can usually check if a broker is licensed or if there has been an order of disciplinary action against the broker by checking with your state regulator .

How do I report a fake loan company?

You can register a cy-ber crime FIR at the nearest local police station to report them. Step 6:You can report at CERT In of-ficial website. CERTIn is the national nodal agency for responding to computer security incidents as and when they occur.

How do I find out if a company is legitimate in the US?

Check out the company's address, phone number, and website to make sure they look legitimate. Be aware, though, that it's pretty easy for a company to get a fake address, phone number, and website. If you can, visit the company's physical address and talk to the people who work there.

Do loan companies check your bank account?

Yes, a mortgage lender will look at any depository accounts on your bank statements — including checking accounts, savings accounts, and any open lines of credit. Why would an underwriter deny a loan? There are plenty of reasons underwriters might deny a home purchase loan.

What happens if I get scammed?

Report the scam to the FTC online, or by phone at 1-877-382-4357 (9:00 AM - 8:00 PM, ET). The FTC accepts complaints about most scams, including these popular ones: Phone calls. Emails.

Is Quicken Loans a predatory lender?

Quicken Loans is a predatory lender. It's impossible to read the numerous lawsuits against the mortgage company and conclude otherwise.

Can mortgage lenders rip you off?

In some cases, lenders accept your application and then charge you fees even if you cannot qualify for the mortgage. This is a way lenders rip off unsuspecting borrowers. Not only is your mortgage application declined but you may also lose hundreds of dollars in unnecessary fees.

What does no closing cost refinance mean?

What is a no closing cost refinance? A no closing cost refinance is mortgage refinancing that helps cover closing costs. So, if you're looking to refinance but don't have the cash to cover additional closing fees upfront, you can shop around for a loan that can cover your closing fees at signing.

Is it better to refinance with current lender or new lender?

It's best to refinance with your current mortgage lender if it can offer you a better deal than the other ones you've looked at. You won't know if this is the case until you've put in the work to compare rates from at least a couple other mortgage brokers or companies.

Is it better to refinance with the same lender?

Even if your current lender doesn't offer you the lowest rate on a refi, there could be other reasons to stay. “It is usually easier to refinance with the same lender; they have your information, they have a lot of the borrower's history, payment history, income, etc., on file,” Kan said.

Is Quicken loan legit?

Quicken Loans is one of the highest-rated mortgage companies. In 2020, it scored the top rating on J.D. Power's customer satisfaction survey.

Is LendingTree legit?

LendingTree is 100%, certified legit. LendingTree will connect you with lenders, and the service is completely free. One of the main criticisms of LendingTree is the potential for “hard pulls” on your credit by lenders.

What is the catch with Dave app?

The app's fees include: A monthly $1 subscription fee. An optional express fee between $1.99 and $5.99 to receive funds within eight hours (instead of the standard 1 to 3 days). Optional tips up to 20% of the amount borrowed.

How do I know if a loan company is registered?

The process you need to follow to check a lender

The most reliable way of spotting quickly if a loan provider is formally accredited is to not only make sure they clearly mention it in their information but to visit the NCR online and get official confirmation of their registration status.