It’s no secret that buying a home can be a daunting process. And while there are certainly plenty of legitimate lenders and real estate agents out there, there are also plenty of scam artists looking to take advantage of unsuspecting first-time buyers. So, how can you protect yourself from being scammed during the homebuying process? Here are tips first-time homebuyers can use:

Get a pre-approval letter from a reputable lender before you start looking for houses.

The first step in the home buying process is to get a pre-approval letter from a reputable lender. Pre-approval will let sellers know that you are serious about buying a house and that you have been vetted by a reputable financial institution. This lets them know that they won’t be wasting their time showing you houses, as it is highly unlikely that you will be able to buy a house without first getting pre-approved.

It might be intimidating especially if it’s your first time getting a loan for a house, but don’t worry. Lenders are there to help first-time homebuyers, so ask as many questions as you need to feel comfortable with the process.

Make sure that your lender can provide you with a pre-approval number before you agree to work with anyone.

Ask for referrals from friends, family, or colleagues.

If you have a friend or colleague that has recently bought a house, they might be able to put you in touch with their real estate agent and lender. This is a great first step as they will already have a track record of success working together.

If your friend does not have a real estate agent or lender, ask them if they can refer you to someone who is trusted within their community. This is an effective first step as you will be working with someone that has already been vetted by someone you can trust.

Always be suspicious of anyone who tries to rush you into making a decision.

A common tactic used by scammers is trying to get first-time homebuyers to make a quick decision that they will most likely regret later on. If you find yourself working with someone who is telling you that time is of the essence, then you should be suspicious. The person pressuring you to act quickly is very likely trying to close the deal before you have had time to do your due diligence. Always take time to research all of the options available. Never sign a contract because someone has pressured you into doing so.

If you tell someone that you are not interested in their services, then just say “no,” and don’t give them further explanation (unless it is a reputable lender). Even if the person has good intentions and means well, letting them continue to hound you to use their services is wrong. Remember, if you are working with a first-time buyer specialist or someone who is specifically there to protect first-time homebuyers from being scammed, then they should know when to back off.

Also, never allow anyone to pressure you into signing something that has blanks, especially if the person trying to convince you knows nothing about contracts. No reputable agent or lender should ever pressure you into signing a contract if it’s not fully completed. If a lender or agent is trying to rush you, then they most likely have something to hide.

While it might be tempting to just get the first offer you see, this can be a huge mistake. Always take time to read the contract and understand what it says before you sign any papers. If you do not understand something, ask for an explanation or get professional help in understanding the contract before signing it. Many first-time homebuyers have been scammed by agents who were trying to rush them into deciding before they had read the contract first.

Don’t let yourself be pressured into buying a property that’s not right for you.

Remember, if it sounds too good to be true, it probably is. Never sign a contract until you are completely satisfied with the terms. You’ll most likely have several weeks to review contracts before signing one. Don’t rush into anything! If the salesperson or lender tries to pressure you into making a quick decision, then just say “no” and walk away.

The best first step that first-time homebuyers can take to avoid being scammed by predatory lenders or agents is to just say “no” if the agent/lender tries to pressure you into making a quick decision. The less time someone has, the more likely it is that they are trying to scam you out of your hard-earned money. Lastly, remember to take time to read over the contract before signing anything and learn how the process works first.

Meta title: Tips Before Buying Your First Home
meta desc: First-time homebuyers are often the most susceptible to being scammed by predatory lenders and agents. Read on to know more.