Tools · Protect yourself
Is this offer a scam?
A quick red-flag check on a lender or offer — plus the wire-fraud rule that keeps your closing funds from being stolen.
Mortgage scams and closing-wire fraud are common and expensive. Tick anything that matches the lender or offer in front of you, then check the risk — and read the wire-fraud rule below before you move a dollar.
Is this lender or offer legit?
Check every warning sign that applies.
Before you wire a dollar, verify by phone
Never trust wiring instructions — or last-minute changes to them — that arrive by email, even if they look perfect and come from a name you know. Criminals spoof title companies and lenders to steal closing funds.
- Before you send, call the title/escrow company and confirm the wiring instructions out loud — using a phone number you look up yourself, not the one in the email.
- Treat any last-minute change to the account or amount as fraud until you’ve re-confirmed it verbally.
- Right after sending, call to confirm they received the exact amount.
Suspect a fraudulent wire? Move within hours: call your bank to try to recall it, then report it to the FBI at ic3.gov. Speed is everything.
General guidance, not a verdict on any company. Verify lenders at NMLS Consumer Access; report scams to the CFPB and the FBI IC3. Legit lenders don’t rush you, guarantee approval, or ask you to wire money to an individual.
Related read: Why the calls start the day you applyTerms on this page
- EscrowAn account the lender uses to collect and pay your taxes and insurance with your payment; also the neutral party holding funds during closing.
- Closing Disclosure (CD)The final statement of your exact loan terms and costs; you must receive it at least three business days before closing.
- Title insuranceA policy protecting you and the lender against title problems; you can shop for it.
- Closing costsOne-time fees to finalize the loan and purchase — lender fees, title, taxes, prepaids — usually a few percent of the price.
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