Lying About Your Primary Residence
If you plan on living in the house full-time, make sure you say so. You might get a lower interest rate if you tell the lender you are going to use the house as your primary residence. On the other hand, if you plan on renting out the house, you need to be honest on the application. If you lie about living in the house, it could be considered mortgage fraud, which is a crime.
Not Disclosing The Source Of Your Assets
Lenders have a legal duty to make sure money laundering is not taking place. If the source of your down payment is coming from someone else, such as a parent, there is certainly nothing wrong with that. On the other hand, you need to be honest about where the money came from. If you look like you are hiding the source of your money, it will only make the application process more complicated.
Omitting Sources Of Debt
No matter how small you might think your debt might be, you need to disclose every single source. A few examples include student loans, car loans, and credit card debt. There is a detailed underwriting process that has to take place, and if your mortgage lender finds out that you lied on your application, they could deny your application outright, no matter how competitive you might be.
Be Honest When You Apply For A Mortgage
Lenders have a legal duty to review each application in full. Every question has a purpose, and you need to be honest when you answer them. If you need help applying for a mortgage, you should reach out to an expert who can help you put your application in the best position possible to be successful.
