5 Scams Every New Homeowner Should Know About
As buying season starts ramping up, it's vital to educate both future and current homeowners about common scams and wire fraud tactics. It never hurts to be wary during the home buying process, especially when finances are involved. Con artists like to take advantage of unsuspecting buyers, likely overwhelmed by the required documentation it takes to finalize a mortgage. Don't fall for their schemes! By educating yourself about five of the biggest mortgage-related scams, you'll safeguard yourself from those who would steal from you.
Published Mar. 5, 2026
As buying season starts ramping up, it’s vital to educate both future and current homeowners about common scams and wire fraud tactics. It never hurts to be wary during the home buying process, especially when finances are involved. Con artists like to take advantage of unsuspecting buyers, likely overwhelmed by the required documentation it takes to finalize a mortgage. Don’t fall for their schemes! By educating yourself about five of the biggest mortgage-related scams, you’ll safeguard yourself from those who would steal from you.
- Wire Fraud
Wire fraud is one of the most serious mortgage scams there is. It often happens in the form of a scammer posing as an agent or title company trying to trick you into wiring closing costs into a third-party account. Here are four important tips to keep in mind:
- Be Suspicious of Wire Instructions via Email: If you receive an email or any other form of communication that appears to be from our company or the title company containing wire instructions, you should consider it suspect
- Verification is Crucial: Call your lending team or title company directly at a number you trust to verify any wire instructions. Under no circumstances should you correspond with the sender of such emails
- Check the Sender’s Email Address: Check the sender's email address and not just the display name! Fraudulent emails often use similar-looking addresses to deceive recipients
- Official Company Communication: We will always use an official company email address, never a generic email service such as Gmail, Yahoo, etc.
- Fake Mortgage Mail
This pertains more to new homeowners after they’ve closed on a property. After purchasing a home, you may start receiving official-looking mail, demanding that you need to pay for copies of your deed, mortgage insurance, or home warranty. Banking on the fact that you’ll have been overwhelmed by paperwork throughout the loan process, they’re hoping to trick you into paying for documents you already have access to.
A good rule of thumb: should you receive anything slightly suspicious in the mail about your mortgage, do NOT pay it and instead, call you loan officer or agent to double check. Always better to ask!
- Fraudulent Listings
Whether a listing is being overvalued or doesn’t even exist altogether, you’ll need to be wary when hunting for a home. Some fraudsters try to unload less-than-loved homes, and they’ll lie about a property that’s been sitting on the market, stating that multiple offers are being drafted.
Another fraudulent listing tactic is called “The Bait and Switch.” A real estate scammer will try to trap inexperienced buyers with this one. They’ll advertise a fake property for sale at an unbeatable price, but when the buyer calls to inquire, they’ll say that it’s already been sold but they can show off other properties. These real properties will either be totally overpriced or falling apart. Another rule of thumb: if something seems too good to be true, listen to your gut!
- Deed & Title Scams
This scam involves document forgery when con artists target the legal ownership of a property. Through data breaches and phishing, they’ll attempt to forge illegal title deeds to transfer the title of your property. They’ll then try to take out loans against your home and attempt to sell it. In addition, scammers will create fake deeds to impersonate sellers.
To protect yourself and your family against this scam, keep tabs on your property records regularly. You can do this through your county recorder’s office. Title monitoring services and identity theft protection plans exist if you want to take extra precautions.
- Home Inspection Impersonators
A home inspection is vital for the protection of buyers, sellers, and lenders. However, certain individuals will pose as professional home inspectors and perform slapdash work for a quick buck. They may rush through the inspection, skip large areas like the basement and attic, and act evasive. Here are some main points to keep in mind:
- Research your inspector’s credentials and online reviews
- Interview the inspector prior
- Ask what the inspection will cover and how long it will take
- Is their report thorough or is it missing things? You can always obtain a second opinion
Do you feel well-equipped to tackle the mortgage process now, with a Batman’s belt of handy tips and tricks to keep these scammers at bay? Don’t worry, you’ll always have your trusty crew of loan professionals to fall back on, through thick and thin. Bad apples try to ruin the fun and excitement of a new home, but we’re here to make sure that doesn’t happen. Swindlers, hucksters, and thieves, begone!
Source: Realtor.com, Zillow