Purchasing your first home can be an exciting process. If you are new to the real estate market, you need to be aware of potential scams to protect yourself. Here are the three most common real estate scams and how you can protect yourself.
Real Estate Wire Transfer Fraud
Real estate wire transfer fraud can be a common occurrence as you approach closing on your new home. Some criminals can pose as a real estate agent, bank or title company. These criminals may contact you by email and give you instructions on how to wire funds for your closing. Before sending money, contact your lender or title company with the phone number you have in your own paperwork to confirm the wiring instructions you have been provided.
Wiring instructions will never be sent in an email or as a PDF and should ONLY be used if sent in a secure link.
Faulty Home Inspections
Before purchasing your home, be sure to have a thorough inspection using a qualified home inspector. A certified inspector identifies hidden issues in the home that can create major repair expenses. Home inspection scams can include incomplete inspections and hidden fees. Make sure to research the inspector carefully before having an inspection done or make sure the inspector provided was referred to you by a reliable party in the transaction. You may also want to have a second inspection performed to help identify any discrepancies.
Mortgage Loan Scams
Once you purchase your new home, you may start receiving phone calls from criminals pretending to be mortgage lenders. You may be told you can lower your monthly mortgage payments on your real estate in exchange for access to your bank account and a small fee. Never give out your bank account information over the phone. If you need to refinance your mortgage, meet directly with a bank or mortgage lender to negotiate a deal.
Make Real Estate Buying Easier with Network Title
When buying a home, it is important to recognize potential pitfalls, so you do not become victim to common real estate scams. Network Title can help you with real estate transactions and title services. Contact us today to learn more about our services.