How Identity Theft Can Stop You From Buying a Home

10.11.25

Identity Theft

Suffering from identity theft can turn your financial world upside down. You may struggle to get or keep a job and open new lines of credit that you need. One of the most devastating ways this crime can hurt you is by affecting your ability to gain housing. This blog examines how identity theft can stop you from buying a home and what you can do to fight back. If you have been impacted by identity theft contact our Florida identity theft attorney today.

How False Credit Entries Affect Florida Mortgage Applications

The idea of credit began with the Fair Isaac Corporation, now known as FICO, in the 1840s. In 1989, FICO coordinated with national credit reporting agencies to institute the credit score we know today, which creditors use to determine your ability to manage credit. When identity thieves ruin your credit with false entries, it can impact your plans to secure a mortgage.

Mortgage lenders want to see a low credit utilization score and few negative entries, which supports their expectation that you’ll pay your monthly bill on time. False credit entries can reduce your credit score, resulting in higher interest rates and a chance of loan refusal.

Delays and Denials in the Florida Mortgage Process

Illegitimate charges and fraud alerts on your credit report due to identity theft can drag out the mortgage approval process as you struggle to provide evidence of your creditworthiness. If you have not taken legal action against the thieves, you may face denials until you can demonstrate which charges are yours and which ones are false.

Real-World Consequences for Homebuyers

According to the National Association of Realtors (NAR), first-time home buyers are facing multiple obstacles to getting their starter homes, including rising prices. By the time you’ve saved enough to get into a house, you can face significant trouble clearing the mortgage approval process if you’ve been a victim of identity fraud.

You could face unexpected financial costs of having to rent month-to-month in an apartment until you can move, especially if you’ve already ended your lease. If you’re moving into another home and have sold your old one, you could find yourself facing capital gains taxes if you can’t secure a mortgage for a new home within the deadline (by Tax Day of the following year, usually April 15).

Steps to Protect Your Florida Home-Buying Plans

If you discover identity theft, you should file complaints with the following agencies:

If you have fraud alerts on your accounts from previous scammers, dispute all errors on your credit reports before applying for a mortgage. Put off big purchases until after you’ve completed the home-buying process and ask your prospective lender to follow a manual underwriting process instead of an automated one. This lets you speak to an underwriter and explain your circumstances.

How Sharmin & Sharmin Florida Identity Theft Attorneys Can Help

Identity theft is a crime, and you can benefit from working with an experienced law firm that fights for your rights under laws such as the Identity Theft and Assumption Deterrence Act and Chapter 817 Section 568 of the Florida Statutes. At Sharmin & Sharmin, we are dedicated to serving every client with honesty, integrity, and diligence. We listen to your details in a complimentary case review, then get to work investigating the situation and crafting our approach.

We can file paperwork for a lawsuit against identity thieves and litigate your case in court for a satisfactory settlement. Don’t let identity theft derail your plans to move up in life and own a home. Schedule your free consultation with a Florida identity theft lawyer today.