Watch Out! These 6 Little White Lies Can Sabotage Your Mortgage Approval
While it might be tempting to bend the truth here and there to make your mortgage application "stronger," it's necessary to maintain honesty throughout the process. Any fudging of facts could mean your application gets rejected altogether.
Don't make that mistake! Check out these six white lies that can jeopardize your chances of securing that dream home.
1. Inflating Your Income:
It may be tempting to exaggerate your income to qualify for a larger loan amount. However, lenders perform thorough income verification checks, and any inconsistencies can lead to your application being rejected. Be honest about your income to avoid future complications.
2. Concealing Debt:
Concealing existing debt can come back to haunt you. Mortgage lenders analyze your credit history and debt-to-income ratio, so it's crucial to disclose all your debts accurately. Honesty is the best policy when it comes to your financial obligations.
3. Misrepresenting Employment History:
Providing false information about your employment history can be a major red flag. Lenders verify your employment details, so be transparent and provide accurate documentation. Even if you're just seriously interviewing for another position, you should share this with your mortgage professional.
4. Hiding Other Property Ownership:
Owning additional properties while applying for a mortgage is important information that must be disclosed. Concealing this can lead to serious consequences, including loan denial or possibly legal repercussions. Always disclose any other property ownership to maintain a transparent application process.
5. Fabricating Down Payment Sources:
A significant part of the mortgage application process involves verifying your down payment funds. Falsely representing the source of your down payment can lead to serious consequences, so be prepared to provide legitimate documentation for your down payment.
6. Lying about Intentions for Property Use:
Misrepresenting your intentions for the property, such as claiming it will be your primary residence when it won't, can lead to mortgage fraud charges. Always be truthful about how you plan to use the property to avoid legal troubles down the road.
Remember, honesty is the foundation of a successful mortgage application. So, keep it real and work with us to make the process even smoother.