How to avoid real estate scams
If you want to purchase your first home, the real estate market is an exciting place to explore. To protect the largest purchase of your life, you must be aware of scams that could put your financial security at risk and your hunt for a dream home on pause. Here are a few quick tips to help protect yourself and ensure a safe homebuying experience.
Using an unlicensed agent
Always work with a licensed real estate agent and verify their credentials. Working with an unlicensed agent can increase your risk of falling victim to fraud. Luckily, first-time homebuyers in Memphis and Shelby County can rely on United Housing, Inc. to connect them with a team of professionals, including a REALTOR®, to help them move forward in their home search without fear! REALTORS® have tools, resources and a code of ethics they must follow. Their guidance can help you spot scams and avoid homebuying pitfalls.
Illegitimate financial partners
Choosing the right mortgage lender and learning how to spot a mortgage scam are two key steps in the homebuying process. Mortgage scams begin by offering more favorable mortgage terms for borrowers, often involving loan flipping – a practice where the same loan is repeatedly refinanced to generate more overall fees for the lender. United Housing’s Cherry Mortgage is a great, affordable option with no down payment, a fair interest rate and simple qualifications. Working with an organization like United Housing or a legitimate financial institution can help you feel more secure in your financing option.
Trust your instincts
Work closely with your REALTOR® and their recommended legal partners to review all materials before signing any contracts. Don’t ignore any red flags or uneasy feelings – investigate further and ask questions! For example, don’t let a seller convince you not to do a home inspection or try to convince you to work with an inspector that you haven’t vetted. Alongside your REALTOR®, your partners at United Housing can offer recommendations for licensed inspectors in the area.
The best way to build strong instincts is to go into the process with a solid understanding of what to expect. That’s where United Housing’s Homebuyer Education Course comes in. We will walk you through homebuying step-by-step to ensure you’re confident when shopping for your house. Because you know what to anticipate, alarm bells along the way should signal a sign to stop and ask more questions.
Take the necessary steps to protect yourself and your future home. We’re here to help you on your journey, and we would love to see you in an upcoming HBE Course! Click here to learn more.