You’ve spent years doing things the right way. You’ve worked hard, saved your money, built your credit, and finally reached the point where buying a home is within reach. Everything seems to be falling into place, until suddenly, it isn’t. You’re sitting at your desk, excitedly waiting for the lender’s call, when you’re told that something doesn’t look right on your credit report. Accounts you don’t recognize. A balance you didn’t create. A loan you never took out. In this moment, you realize you’re a victim of identity theft. While this is a serious situation, it’s one you can manage. Continue reading and contact a New Mexico consumer lawyer from Feferman, Warren & Mattison to learn about what you need to do if identity theft is affecting your mortgage application. Here are some of the questions you may have:
How Can Identity Theft Affect a Mortgage Application?
Identity theft can make a mess of the mortgage process in ways most people don’t expect. When you apply for a home loan, your lender digs deep into your credit history to decide if you’re reliable. If someone has been using your information to open fake accounts, run up debt, or miss payments, your credit report may show problems that aren’t yours. Even one fraudulent account can drag your score down and send your application into limbo.
Sometimes, it’s not even about missed payments. Lenders might spot odd details, such as an unfamiliar address, an employer you’ve never worked for, or strange activity tied to your Social Security number, and hit pause on your application until it’s sorted out. As a result, that pause can cost you time, your locked-in interest rate, or even the home you were hoping to buy.
What Should You Do When You Realize What’s Happened?
The first thing you should do is contact your lender. Let them know you suspect identity theft and ask them to temporarily pause your application. This keeps inaccurate information from moving forward in the process.
Next, you’ll want to get copies of your credit reports from all three major credit bureaus, which are Equifax, Experian, and TransUnion. You can get free copies at www.annualcreditreport.com. Go through each one carefully and put sticky notes on anything that doesn’t belong. If you see accounts or inquiries you didn’t authorize, it’s time to act. Place a fraud alert on your reports so lenders know to verify your identity before opening new credit in your name.
After that, file an identity theft report with the Federal Trade Commission through IdentityTheft.gov. You’ll get an official report that can help you prove your case to creditors and credit bureaus. In some cases, it’s smart to freeze your credit completely until you’ve resolved everything. This prevents anyone, including you, from opening new accounts without lifting the freeze.
You should also ensure that you keep a record of every phone call, email, or document you send.
Finally, you should consider involving a consumer protection lawyer who can help you file formal disputes, contact credit bureaus on your behalf, and push creditors to remove false information from your reports. Most importantly, a lawyer will ensure your rights are protected throughout the process.
If you have additional questions or would like to speak with an attorney about your case, simply contact Feferman, Warren & Mattison today.
