Buying a home is one of the biggest financial decisions most families will ever make. Unfortunately, it’s also a time when scammers look for opportunities to take advantage of hopeful homebuyers, first-time buyers, immigrants, and families who may not be familiar with the U.S. mortgage process.
In Houston, many Latino and immigrant families are working hard to achieve the dream of homeownership. Most mortgage professionals, real estate agents, and lenders are honest and ethical. However, government agencies including the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) regularly warn consumers that mortgage and real estate scams continue to occur across the United States.
At RecapHTX, we believe education is one of the best ways to protect our community.
Here are five warning signs every homebuyer should know.
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They Pressure You to Act Immediately
Scammers often create a false sense of urgency.
You might hear phrases like:
- “This special loan expires today.”
- “You have to wire the money within the next hour.”
- “Don’t tell anyone until we’ve finished processing.”
The CFPB warns that creating urgency is one of the most common tactics used in financial scams because it prevents consumers from taking time to verify information or ask questions.
What you should do
A legitimate lender will give you time to review documents, compare loan options, and ask questions.
Never let anyone rush you into signing paperwork or sending money.
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They Ask for Upfront Fees Before Providing Help
If someone promises to:
- guarantee mortgage approval,
- stop foreclosure,
- modify your mortgage,
- or “fix” your loan,
and asks you to pay first, that is a major warning sign.
The FTC explains that companies offering mortgage relief generally cannot legally collect fees before they deliver the promised results under federal mortgage assistance rules.
What you should do
Ask exactly what the fee is for.
Request everything in writing.
If someone refuses to explain the charges clearly, walk away.
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They Tell You to Stop Talking to Your Lender
One of the biggest red flags is when someone says:
“Don’t contact your lender anymore.”
The CFPB and FTC both warn consumers that scammers frequently tell homeowners to stop communicating with their mortgage company so the scammer can take control of the situation.
What you should do
Always stay in direct contact with your lender or loan servicer.
If someone discourages you from communicating with them, treat it as a serious warning sign.
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They Change Wire Instructions at the Last Minute
Wire fraud has become one of the most expensive real estate scams in America.
Criminals sometimes gain access to email conversations and send fake wire instructions that appear to come from:
- your lender,
- title company,
- attorney,
- or real estate agent.
The CFPB advises buyers to verify wiring instructions by calling a trusted phone number they already know—not one provided in the suspicious email.
What you should do
Before wiring any money:
- Call your title company using a verified phone number.
- Confirm the account information verbally.
- Never rely solely on emailed wire instructions.
A five-minute phone call could save thousands of dollars.
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They Promise Guaranteed Loan Approval
No legitimate mortgage lender can honestly guarantee approval before reviewing your:
- income,
- credit,
- assets,
- debts,
- and property information.
Every mortgage application must go through underwriting and eligibility review.
If someone advertises:
- “100% guaranteed approval”
- “Everyone qualifies”
- “No questions asked”
be extremely cautious.
While some loan programs have more flexible requirements than others, legitimate lenders still evaluate whether a borrower meets program guidelines. Claims of guaranteed approval without review should be viewed skeptically. Consumer protection agencies consistently advise consumers to be wary of offers that sound too good to be true.
How to Protect Yourself
Here are a few simple habits that can help keep your family safe:
- Research the company before sharing personal information.
- Read every document before signing.
- Never sign blank forms.
- Verify phone numbers independently before sending money.
- Ask questions until you understand every step.
- Compare multiple loan options instead of accepting the first offer.
- Keep copies of every document and email.
The FBI also recommends verifying the licenses and credentials of mortgage and real estate professionals and never signing documents with blank spaces.
Our Commitment to the Community
At RecapHTX, we believe informed buyers make stronger homeowners.
Our goal is not simply to help people obtain a mortgage—it is to help families understand the homebuying process so they can make confident, informed decisions.
If something doesn’t feel right, pause the process, ask questions, and verify the information through trusted sources. Taking a little extra time can help protect your finances and your future.
Trusted Resources
For additional information about mortgage scams and consumer protection, consult these official resources:
- Consumer Financial Protection Bureau (CFPB): Mortgage fraud, scams, and homebuyer guidance
- Federal Trade Commission (FTC): Mortgage relief and foreclosure scam alerts
- Federal Bureau of Investigation (FBI): Mortgage fraud prevention resources
These organizations regularly update their guidance as new scam tactics emerge.
