Millions of people buy homes every year. It’s probably the biggest purchase you’ll ever make (until you’re ready to upgrade!) With this comes lots of risk though, if you try to do too much without the professionals. Here are Three Mortgage Scams and how to avoid them.
Scam 1- Your moving company holds you hostage
This is an insane stunt. When you move, you hire a moving company, tell them how many rooms and how far, they send guys out, and you move, right? Well, not necessarily. Some less-reputable moving companies will grab hold of your stuff and lock you down until you pay them a higher fee than the originally negotiated and agreed to amount. While this sounds insane, it’s happened to people.
The best way to avoid this is to get an iron-clad agreement. If the moving company tries to extort you, hold that agreement up and tell them to show up with your stuff or you’re calling a lawyer. You can also have someone from the moving company come beforehand and agree to the amount of stuff you have. That way they can’t come back to you and say you have too much stuff.
Scam 2- Your agent will buy your house
This never works. Some real estate agents will claim that they will sell your house or buy it themselves. Well, read the fine print. They will always include self-serving language and then offer you well-below market value for your home. Your Dad probably told you “If something looks too good to be true, it is,”, right? Well, that’s what this is.
The way to avoid this is work with a reputable realtor. Ask your mortgage company after you get pre-approved (you got pre-approved, right?) who they recommend, ask your friends, family and neighbors, check reviews, and go with a reputable realtor.
Scam 3- “We’ll fix that, sure.”
You are ready to buy the house but have some concerns. After you have the house professionally inspected by an insured inspector (you did that, right?) they have some issues that need fixing. The homeowner claims that they will fix them at their expense and you happily move in, only to find out that the fixes are temporary at best, or not done at worst. Now you own the house, what do you do?
The best way to avoid this is to bring your inspector back to double-check the work if you aren’t confident that you can determine that it’s done right. Don’t sign off until you’ve had your final walkthrough and know that the home is in satisfactory condition.
Now that you’ve been warned about some pitfalls of the buying process, give The Home Loan Expert team a call to get your home purchased now, while rates are low. Call us in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515 or Nashville at (615) 810-8555. You can always apply online at www.thehomeloanexpert.com, and we’re also open on Saturdays to better serve you. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?