plenty of experience. Ethical lend- ers will never ask you to pay money up front or offer you an interest rate before they’ve checked your credit.
Always Purchase Title Insurance
While title fraud isn’t the most common real estate scam, it’s still something to be aware of. It’s when a scammer steals your identity and forges documents to either re-mort- gage your home and walk away with the cash, or to sell your home right out from under you. Any repu- table lender will require you to pur- chase title insurance, which protects against this situation.
Recognize What’s Too Good To Be True
If a deal on a home, a mortgage, or anything else having to do with purchasing a home seems too good to be true, it probably is. Don’t fall for phone calls or emails offering low,
low mortgage rates. If you receive an offer for an excellent deal, show it to your real estate agent before you accept. If it’s too good to be true— it’s probably a scam.
Common Real Estate Scams Listing Scams
One of the most common ways scammers try to get your money is through a listing scam. First the scammer finds a home for sale online, then re-posts it with his con- tact information. When a potential buyer calls, he tries to charge an application fee. If the buyer pays it, the scammer then disappears never to be heard from again.
You can easily avoid listing scams by working with a reputable real estate agent. If you’re look- ing for a home without an agent, make sure all listings have business information and credentials of a real estate agent representing the home.
Unlicensed Realtor Scam
This scam includes an unli- censed realtor doing everything a regular realtor would do, but when the check is written for escrow, they deposit it into their own account.
So, always make sure your real- tor is properly licensed and has a solid reputation.
Avoiding scams when buying a home requires your diligence. Develop relationships with every- body you will be working with throughout the process. Solid rela- tionships with those handling your money and the purchase of a home, will ensure you don’t get sucked into a scam that could cost you thou- sands of dollars.