I would not send an application fee to anyone that was not local and that I had not personally met.

to add... just remember there is no 5% money for real estate deals unless your going through full blown underwriting and through a bank or federally insured lender. so if you see 5% rate be cautious then the individual is just that some individual.. red flag city

There is NO legitimate need for any advance fees with the exception of an appraisal. Whether someone represents themselves as a HML or PML and charges points does not matter. As a lender myself, I charge points as most do. However, they are paid at closing. There are LOTS of scammers looking to take your money. There are even some big name lenders that have VERY bad reputations, charging 3K or so in advance, and writing just enough loans to avoid being called complete crooks. If you are talking to a specific person or company, post a question here on BP for feedback. IMO, NEVER pay advance fees..except for an appraisal if the lender requests one.

@Shawn Munoz, check out this page for some tips on avoiding a lender scam.

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Updated almost 9 years ago on 10/24/2016. Most recent reply

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Shawn MunozPoster

Vineland, NJ

General Real Estate Investing

How to spot a scam?

Shawn MunozPoster

Vineland, NJ

Posted October 20, 2016 08:44

How do I know if a private lender is a scam artist? I'm worried about sending an application fee if I can't find their website or they don't post much.

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