When you apply for a mortgage loan to buy a home, you need to share a lot of personal information with your mortgage broker and lender. You may need to provide sensitive information such as your name, address, social security number, salary stub, bank statement, information about your investment and retirement account, copy of your tax return, etc. The lender also draws your credit report and credit score to check your credit history.
It is important to protect all this information from falling into the hands of criminals Personal data can be used to access your accounts, open fraudulent credit lines in your name, and more.
Here’s how to put one together for use with your home business.
1. Find the right lender
You need to make sure you are working with a mortgage broker or lender that you can trust. Do not automatically use the first option you find on Google. You need to make sure that you are working with people you can trust during the process of buying your home.
Research the best lenders and mortgage brokers who offer the type of mortgage you need. You may want to talk to multiple lenders to find the right loan and get the best possible rate. Ask friends and family for referrals. When you are evaluating a business, check complaints with sites like this Better Business Bureau And Bureau of Consumer Financial Protection.
2. Learn about security
Before sending personal information to a lender or mortgage broker, make sure you understand their security protocol. What steps do they take to ensure your information is safe from identity theft? For example, do they provide a secure online portal for uploading your documents, or do you send information in an encrypted email (hint: the first option is secure).
You also need to know if the business shares information with other third parties. For example, how long do they keep your documents in the file before they are destroyed? Make sure you know what they’re doing with your information.
Of course, you have to do your part to protect your identity. Never send anything over a public, unsafe Wi-Fi network. Make sure you use strong, unique passwords for each system you log in to.
3. Protect personal documents
Personal documents that you keep in your home, such as deeds, mortgage mortgage papers and other necessary documents should be kept in a safe lockbox in a safe place. Anything you don’t need to hold should be torn off before you can throw it away. Thus, no identity thief will be able to trash or reuse your personal information.
4. Monitor your credit during the home buying process
It is important to monitor your credit when you plan to submit a mortgage application during the home buying process. You want to make sure your credit is in the best shape when you apply for a loan, so that you can get your application approved and access lower interest rates and better terms. Monitoring your credit ahead of time can help you make sure your credit is in good shape.
You want to continue monitoring your identity and credit even after you close your home. This can help you quickly identify signs of identity theft, such as an application for an account you have never opened or a credit you have not submitted. While Identity Theft Protection and Credit Monitoring is always a good idea, it is especially useful during and immediately after the home buying process.