Most lenders run a hard credit pull just to tell you what you might qualify for. Scammers exploit the same anxiety. They pose as “free” prequalification services and ask for your Social Security number, a fee, or both. The two risks are separate: one is fraud, the other is a legitimate practice that costs you points on your score. This guide covers prequalification scams to avoid, with seven checks you can run before you share anything. It also shows how Duane Buziak, NMLS #1110647, Coast2Coast Mortgage LLC, NMLS #376205, handles pre-qualification through a NoTouch Credit Pull, so you get answers without a scam risk or a credit penalty.
1. Verify the NMLS License Before You Share Anything
Every mortgage loan originator and mortgage company in the United States must be registered in the Nationwide Multistate Licensing System (NMLS). The free lookup, NMLS Consumer Access, is public. A scammer can copy a logo, a testimonial, and a professional-sounding name. A scammer cannot easily fake an active license record tied to a real ID number, authorized states, and a regulatory history.
Illustration: before applying, you search NMLS #1110647 (Duane Buziak) and #376205 (Coast2Coast Mortgage LLC). You confirm both show active status and state authorizations for the state where you are buying. For Duane Buziak, those states are VA, FL, TN, GA, and DC. If you are buying in a state that is not on the record, that originator cannot legally take your application there, no matter how friendly the website looks.
- Go to nmlsconsumeraccess.org and search by name or NMLS ID.
- Open the individual’s record and check license status, authorized states, and any regulatory actions.
- Open the company’s record and run the same checks.
- Cross-check the name, phone number, and address on the NMLS record against the website you are using.
The most common mistake is checking only the company. A real company can employ an unlicensed person, or someone can use a legitimate company’s name without any connection to it. Check the individual originator and the company, and confirm the license covers your state.
What to measure: both IDs resolve with active status in your state, and the contact details on the record match the ones you were given.
2. Refuse Any Upfront Fee for a Pre-Qualification
Advance-fee fraud works by charging you for a service that never arrives. Pre-qualification is an estimate based on information you provide, and it should cost nothing. When a “provider” asks for money before delivering anything, the fee is the product. Wire transfers, gift cards, and cryptocurrency are the payment methods fraudsters prefer because they are hard or impossible to reverse.
Illustration: a site tells you it will release your pre-qual letter after a $199 “processing fee.” A legitimate free service would never ask. That $199 buys you nothing, and the payment details you hand over can be used again.
The common mistake is accepting a fee relabeled as a “refundable deposit” or “rate lock reservation” at the pre-qualification stage. The label does not change the problem: you are paying before you have a verified provider or a formal application.
- Ask in writing what is charged and when. A real provider answers plainly.
- Decline any payment method that cannot be reversed.
- Later in the process, compare any real charges against the fee disclosure on your Loan Estimate, the standardized form lenders must provide after a formal application.
Duane Buziak offers pre-qualification free, with no payment request before a formal application.
What to measure: you receive a pre-qualification having paid $0, with no payment request of any kind before a formal application.
3. Question Guaranteed Approvals and Too-Good Rates
Real approval depends on verified income, assets, credit history, the property, and the loan program. No one can honestly guarantee the outcome before reviewing those. A promise of guaranteed approval, or a rate far below the market, is bait designed to get you to hand over your details or money.
Illustration: you receive an unsolicited text offering a rate well under published averages, “no documents needed, approval guaranteed.” Real mortgages require documentation. The missing paperwork is the tell.
Start by comparing the quote with a published survey. Freddie Mac’s Primary Mortgage Market Survey is the standard reference, and rates move weekly, so check the current figure as of the day you compare. A quote that sits a full percentage point or more below it without a clear explanation, such as points paid at closing, deserves suspicion.
Also ask what will be verified and what could change the estimate. A trustworthy provider explains that a pre-qualification is a preliminary estimate, not a loan commitment. The common mistake is treating a pre-qualification letter as a commitment to lend. It is not. Approval still depends on underwriting and an appraisal.
For context on scale, the 2026 conforming loan limit is $806,500, with a high-cost-area limit of $1,249,125. An offer that ignores limits and loan types entirely is not speaking the language of a real lender.
What to measure: the quoted rate falls within a reasonable range of published averages, and the provider states the conditions and what will be verified in writing.
4. Watch for Hard Pulls Disguised as “No-Impact” Checks
This is the risk that is not technically a scam. Many forms labeled “quick check” or “see your rate” include fine print authorizing a full hard credit inquiry. According to the Consumer Financial Protection Bureau, hard inquiries can lower your credit scores by a few points, and they can stay on your credit reports for up to two years. Soft inquiries do not affect your scores.
What a small score drop costs
Illustration, using hypothetical rates: suppose you are applying for a $300,000 FHA loan over 30 years. At a 590 score you are quoted 7.00%, and at 580 you are quoted 7.25%. These are example rates, not current quotes.
- At 7.00%, principal and interest comes to about $1,995.91 per month, or $718,527 over 30 years.
- At 7.25%, it comes to about $2,046.53 per month, or $736,751 over 30 years.
- The difference is about $50.62 per month and about $18,224 over the full term.
Real pricing depends on far more than a single ten-point move, and not every drop changes your tier. But the example shows why an unnecessary hard inquiry is not a harmless formality.
The common mistake is clicking “I agree” without reading the credit authorization. Read the language, then ask in writing: “Is this a soft or hard inquiry?” Choose a soft pull mortgage pre-qualification such as Duane Buziak’s NoTouch Credit Pull, which lets you see where you stand with no credit impact.
Many major national lenders and retail banks still run hard inquiries at this stage, though practices vary by company, so ask each one directly.
What to measure: your credit report shows no new hard inquiry after you are pre-qualified.
5. Spot Phishing, Fake Lead Sites, and Lookalike Domains
Some sites exist only to collect your details. Some are outright fakes. Others are lead-resale operations that sell your information to many lenders, which is why your phone rings for a week afterward. Phishing messages add a third angle: a text or email with a link that looks real but leads to a copy of a legitimate site with one letter changed.
Illustration: a text says “Your pre-approval is ready, tap to view.” The link points to a lookalike domain. Compare that with the safer move: ignore the link and call the number published on the verified company site.
- Type the web address yourself rather than tapping a link in a message.
- Confirm the page uses HTTPS and check who owns the domain with a WHOIS lookup.
- Read the privacy policy for language about sharing or selling your data to “partners.”
- Call the phone number listed on the NMLS record or the company’s own site, not the one in the message.
The common mistake is typing a Social Security number into a form reached from an unsolicited message. Treat any unrequested “your approval is ready” message as suspect, even if it uses your name.
What to measure: only the provider you chose contacts you, and no wave of spam calls or texts follows your inquiry.
6. Protect Your Documents and Your SSN During the Process
Different stages need different information. A pre-qualification typically needs a few basics: income, debts, assets, and permission for a credit check. It does not need your online banking login, a photo of your driver’s license, or a full document package. Asking for those early is how identity theft starts.
Illustration: a “processor” asks for your online banking password so they can “verify funds.” No legitimate mortgage professional needs your credentials. Statements can be provided as documents through proper channels.
- Share documents only through a secure portal, never by text message or plain email.
- Review your reports for free at AnnualCreditReport.com, the federally authorized source, before and after you apply.
- If you have a credit freeze, lift it only for the provider you chose and only for the time needed.
The common mistake is sending a full document package at the pre-qualification stage to a contact you have not verified. Hold the heavy paperwork until you have confirmed the license (strategy 1) and have a formal application underway.
Duane Buziak’s mortgage pre-approval without hard pull option starts with the minimum information needed, so you are not handing over sensitive files before you need to.
What to measure: documents move only through a secure portal, and your credit reports show no unexplained accounts or activity.
7. Slow Down When Someone Pushes Urgency or Secrecy
Pressure is the scammer’s main tool. “This rate expires tonight.” “Don’t tell your agent yet.” “Keep this between us.” Urgency stops you from checking, and secrecy stops others from catching the problem. Both are classic fraud signals, and they matter most at closing, where wire fraud is the major risk. Wire fraud means criminals impersonate a title company or agent and send fake wiring instructions so your down payment lands in their account.
For current guidance and reporting, see the FBI’s Internet Crime Complaint Center at ic3.gov, which publishes annual reports on real estate and wire fraud losses.
Illustration: the day before closing, an email “from the title company” arrives with new wiring instructions. You call the title company at a number you already had from your contract, and they confirm they sent nothing.
- Treat any deadline pressure as a reason to pause, not hurry.
- Verify every wire instruction by phone using a number you already trusted, never one in the email.
- Keep your agent and title company informed so an odd request stands out.
The common mistake is acting on emailed wiring instructions without a verification call. If funds are sent to the wrong account, recovery is often unlikely, and speed is the only chance.
What to measure: every payment instruction is confirmed by a call to a number you already trusted before any money moves.
How the Three Core Checks Compare in Practice
Pull type is where legitimate providers differ most, so here is a side-by-side view. The typical practices below are general patterns, not claims about any named company.
| Feature | Duane Buziak, NoTouch Credit Pull | Typical major national lender | Typical retail bank |
|---|---|---|---|
| Credit check for pre-qualification | Soft pull, no credit impact | Often a hard inquiry | Often a hard inquiry |
| Fee to pre-qualify | $0 | Usually $0, confirm in writing | Usually $0, confirm in writing |
| Verifiable on NMLS Consumer Access | Yes, #1110647 and #376205 | Yes, confirm originator | Yes, confirm originator |
| Loan program access | 500+ wholesale lenders | One company’s products | One bank’s products |
Where to Start: Rank the Checks by Payoff
Do three checks first because they stop the biggest problems before you share a single detail: the NMLS lookup, the no-upfront-fee rule, and confirming the pull type. They take about ten minutes together and screen out both fraud and needless score damage. Document handling and urgency safeguards come next, since they protect you once a real process is underway. Strategies 3 and 5 sit between the two groups and are quick to apply as you go.
Duane Buziak, NMLS #1110647, holds Virginia Broker of the Year honors for 2024 to 2025, was named a Scotsman Guide Top Originator in 2025 and 2026, and has more than 1,400 five-star reviews. Duane is a broker, so your loan can be shopped across more than 500 wholesale lenders.
Take the first step toward homeownership with confidence: get your free mortgage prequalification today and discover exactly what you can afford, with no obligation and no cost. Work with award-winning Mortgage Maestro Duane Buziak at Free Prequals by Duane Buziak and benefit from expert guidance, industry connections, and potential savings on your home loan. It is a no hard inquiry mortgage pre-approval path, built as a no credit impact mortgage pre-qual, so you can ask your questions before anything touches your score.