This Is Why Lying on Your Mortgage Application Is Not a Good Idea

Can you actually afford an investment property without lying to your lender?

To ask for a mortgage, a lender will want you to have financial stability and a decent monthly income that guarantee you can pay back the debt. The thing is that there is no secret when it comes to your history and records that last forever, especially if you exaggerate to get a bigger loan, smaller down payment or a better mortgage rate.

Lying on your mortgage application is not worth it because you could quickly face probation and thousands of dollars in fines and compensation for any losses. Some people believe that those are just white lies, but they can bring you more trouble than you think. Myths are associated with unrelatable income, assets, employment and property uses

As we offer a transparent service to our borrowers, at Intercorp Mortgage Solutions, we also encourage our clients to do the same. We think about your future and your sincere desire of finally having a house of your own, so keep reading to get deep into why mocking up fake documents in your application is not a good idea!    

The real consequences of lying

Your lender and any entity can catch you via your data sharing, hidden codes in the documents, information in your tax returns, bank statements, and payslips; most of this happens during post-settlement auditing. Here you have the consequences:

• Most severe charges of fraud can lead to the prison term of 14 years upon conviction, and the least complicated will give you months behind bars. It is rare, but it happens.

• The lender company cancels the loan before it is funded, and with that record, it is almost impossible to ask for a mortgage again.

• If your loan has settled already, you have 30 days to repay the loan, or they will commence an enforcement action against you.

• When forced to pay fine, it will depend on whether the fraud is classified as a felony or misdemeanor, in both cases is it considered a criminal penalty.

• Paying back so soon will force you to sell everything you have.

• If the lenders consider not to charge you right away, it is because they increase your interest rates and your monthly payment amount.

Of course, there are minor mistakes that are not considered fraud, but they are an example of bad organization, so keep those documents neat! If you have any other doubt, please leave your comment below!

What it is essential for you to understand is that a mortgage application is designed to protect the lender, but it protects you just as much. When you get familiar with our services here at Intercorp Mortgage Solutions, you probably don’t need to lie if you are in a less than ideal situation financially. Contact us to know more!

Source: Intercorp Mortgage Solutions

Making false claims on mortgage applications is becoming increasingly common.