Buying your first home is an exciting process, and it’s easy to get caught up in the exciting parts and lose track of the details. Unfortunately, if you aren’t paying attention, it becomes easy for unscrupulous people to take advantage of you. Here are some of the top scams that first time home buyers fall for, and the ways you can spot and avoid them.
After spending a large chunk on your first home, you may be tempted to use a cut-rate moving service to save some money. But using a mover you’ve never heard of before can lead to trouble. Moving scams are popular all across the country, and can result in you losing some or all of your possessions. Before you hire a mover, look out for the following red flags:
- They won’t provide a written estimate. Companies who do this may charge you a lot more than you expected when they deliver your items.
- They don’t have proper insurance. If there is an accident or theft and the mover doesn’t have insurance to cover your belongings, you can end up having to pay out of pocket to replace it all. Ask to see valid proof of the mover’s insurance coverage.
In many popular real estate markets, listing scams are an easy way for con artists to make money. These people look for listings for a home for sale or rent, re-post the details to another website with their contact information, take application fees from people who are interested and disappear. To avoid getting caught in a listing scam, make sure you see the credentials and business information of the realtor who shows you a home.
Loan and Mortgage Scams
When you take out a loan or mortgage to buy a home, the lender who helps you should be acting in your best interest. They are supposed to offer you advice on home financing, how much you can afford, and how to get the best possible interest rate. If your lender does any of the following, you might want to reconsider using them:
- Encourage you to make false claims on your mortgage application, like making more money than you do or having assets you don’t.
- Ask you to pay money up front to apply for a mortgage.
- Offer you an interest rate on a loan before checking your credit.
Be wary of lenders that have recently popped up looking to offer you a cut-rate loan. There are many reputable lenders with established reputations to choose from, so avoid lenders that you can’t find much information or history on.
If you’re shopping for your first home, The Core Group can help. Contact us to get more information on homes for sale in the Central Florida area.