Buying a house can feel like finishing a big race. You’ve spent a long time looking for the perfect home, proving to someone that you’re trustworthy enough to borrow a lot of money, and dodging tricks that try to take even more of your money. Now that you’ve bought the house and moved in, you might think you’re safe from scams, right? But that’s not true.
Every detail of the house buying process is out in the open, and scammers know this. They will try different tricks to take your money or even try to take your house. Here are some scams to watch out for after you buy your house.
Home warranty scams
Home warranties can be helpful. They cover things that your home insurance doesn’t, like if your appliances break. However, after you move into your new home, you might get letters that look very official.
These letters might say “URGENT” or “TIME SENSITIVE” about a home warranty. They may tell you that you need to buy a warranty or that you already have one that needs to be paid for right away. These letters look real and might even mention your lender to seem more believable.
But remember, you are never required to buy a home warranty. If you think you need one, take your time to look up trustworthy companies on your own. Any letter pushing you to act fast can usually be ignored and thrown away.
Utility scams
Once you’re settled in your new home, be on the lookout for utility scams. Someone might come to your door dressed like they work for the utility company. They might say there’s a problem with your utility bill and ask to see it or get your account details.
Be careful—once they have your information, they might switch your services to a more expensive provider without you knowing.
If someone comes to your door claiming to be from the utility company, it’s a good idea to call the company directly to check if it’s true. Don’t give out personal information unless you’re sure who you’re dealing with. This can save you a lot of money and trouble.
“Partner companies” scams
Right after you buy your new house, you might get a letter from a company saying they work with your mortgage lender. They’ll say they need more information to complete your loan agreement, and if you don’t give them this information, you might lose your loan. This sounds scary, but it’s a trick.
If you are already living in your new house, your loan is finalized, and your lender has all the information they need. If you ever get unsure about requests like this, it’s best to call your lender directly and ask them about it, not the company that sent the letter.
Loan scams
Refinancing your mortgage can be smart when interest rates are low or you’ve built up a lot of equity in your home. But be careful about companies that push you to refinance right after you buy your home or keep asking you to refinance.
These companies might be trying to make money off you with high fees and might give you a higher interest rate than you have now. Always look into well-known lenders on your own if you’re considering refinancing.
Another common trick is when a company reaches out to change your mortgage terms. For example, they might offer to arrange payments every two weeks for a fee. Making payments every two weeks is a good thing because it helps you pay off your mortgage faster without feeling it too much—you end up making an extra payment each year.
However, you don’t need to pay anyone to set this up; just talk to your lender. Also, you might get a letter that looks real, saying your mortgage is now with a new lender and telling you to send your payments somewhere else. It’s true that mortgages can be transferred, but if that happens, your original lender will let you know, not some unknown company. Always verify any changes with your lender directly.
Rental scams
In this type of scam, you won’t lose money directly, but it can still cause a lot of trouble. What happens is a scammer will take all the pictures and details from your home’s sale listing and make a fake rental ad with them.
They pretend to rent out your home to people who don’t know it’s a scam. Sometimes, the scammer even sets up house showings and cancels them at the last minute to make their fake rental seem real.
After they collect a security deposit and a few months’ rent from the victim, they disappear. Then, you might find upset people at your door who think they rented your home, and if it’s a vacation home, you might even need to legally remove people who have moved in!
Here are some ways to protect yourself from this scam:
- Ask your real estate agent to take down your home’s listing from the internet once you buy the house.
- Regularly check online by searching your address to see if anyone is using it for a fake listing.
- If you’re not going to be at the home for a while, have someone check on the place regularly or even stay there to make sure no one else can claim they live there.
Title theft
Title theft is a serious scam that new homeowners might face. In this scam, someone makes a fake deed for your home. With this fake deed, they pretend they own your home and can take out loans using your house as collateral. The scary part is you might not know this is happening until there’s a risk of losing your home to a bank you’ve never dealt with before.
Here are three important steps you can take to prevent this scam:
- Pay Attention to Your Mail: Don’t ignore mail that arrives at your house with someone else’s name on it. It might be annoying, but it could also mean someone is pretending to own your home.
- Check Property Records: Once a year, check the property records at your local government office to make sure your home is still in your name. There may be a small fee to do this, but it’s worth it to keep your home safe.
- Protect Your Personal Information: Since title theft is often linked with identity theft, it’s crucial to keep your personal information secure. Follow best practices like shredding documents with personal details and not sharing sensitive information online.
By taking these steps, you can help protect yourself from title theft and keep your home safely in your name.
Tax reduction scam
After you buy a house, you might get a lot of mail from companies saying they can lower your taxes. They talk about new laws or special programs for first-time homeowners and promise to cut your property taxes a lot if you pay them a fee.
Sometimes, they mention the Homestead Exemption—a real rule that lowers taxes if you live in your house instead of renting it out or just owning it as an investment.
But here’s the thing: if these tax breaks are real, they’re usually simple to apply for by yourself. Often, you just need to fill out a one-page form that you can get online for free.
“We Buy Homes” scam
Later, after you’ve had your home for a while, you might get offers from people saying they can buy your home fast, paying cash. This might sound good, especially if you’re having a tough time paying the mortgage or need to move quickly for some other reason.
However, many of these offers are scams. These people might not really buy your home. Instead, they might try to manage it as a rental, saying you’ll make a lot of money.
What really happens is you move out, but you still have to pay the mortgage and take care of the house, and you hardly make any money from it. Or, they might try to make you sign over your house before they pay you, and once they have the deed, they don’t have to pay you anymore.
Buying a house is a big deal, and it should be happy once you’re done closing. Just remember, even after you finish with the mortgage, there are still people who might try to trick you out of your money or home.