6 Scams Targeting New Homeowners

Buying a home is an exciting milestone, but scammers may try to exploit your excitement and inexperience. Be vigilant and watch out for these common fraud attempts:

1. Partner Companies

If you receive a letter from a company claiming to be a partner or associated with your mortgage lender, requesting additional information for your loan, be cautious. Once your home is closed, no legitimate company should be asking for such details. Do not share your personal or financial information.

2. Deed Processing Notice

You might get a bill claiming you owe money for a copy of your deed or a property assessment profile. Don’t pay it. Property deeds are mailed to you for free after a sale or transfer. If you need an additional copy, request one through your county clerk’s office.

3. Business Imposters

Legitimate utility companies will never call or show up at your door asking for payment through non-traceable methods like money orders or cryptocurrency. They also won’t ask to see your bill or account information. Always verify the email, business address, and phone number on any bill you receive. Scammers often use real company names and logos to deceive you.

4. Home Warranty Con

You are not required to purchase a home warranty. If you want one, research reputable companies yourself. Be wary of companies claiming your home warranty is expiring or has already expired and demanding payment.

5. Loan Scams

Be cautious of companies urging you to refinance shortly after closing. They might be trying to profit from excessive loan fees and put you in a higher interest rate than you currently have.

6. Fake Wiring Instructions

Emails that arrive at the last minute with new money wiring instructions are almost always fraudulent.

Source: Texas Real Estate