Saturday, 17 August 2019

Never Attempt These 5 Mortgage Application Frauds

Applying for a mortgage is a lot easier now than it was back in the days. Still, not everyone is qualified for a home loan. Many factors can cost you your mortgage application – including insufficient down payment funds, low credit score, and poor employment history.

Because of these reasons, some try to trick their lenders during the application process. Some do this to qualify for better rates and term. Others do this in an attempt to secure mortgage even if they do not qualify for Mortgage Loans Corpus Christi.

If you have plans of applying for a home loan soon, make sure not to commit the following mortgage application frauds.

Income Falsification

One common requirement when applying for a home loan is a steady income and employment history. Mortgage lenders will check on your employment history and income to make sure you can actually afford the mortgage. You are to provide at least two years worth of tax return documents and pay stubs to prove you’re financially stable enough to qualify for the loan. If you fail to provide proof of steady income, you’re sure to get a rejected mortgage application. Even if you do find a way to falsify such documents, you may end up getting a mortgage that you can’t afford.

Down Payment Gift/Loan

There are Mortgage Loans Corpus Christi programs that allow borrowers to accept down payment gifts. However, there are rules to follow when using such funds. For one, the person who gave you the down payment gift will need to write a paper trail. This will include the details of the person who gave you the funds, your relationship with them and their signature, the exact amount, their statement that the money is indeed a gift and that they don’t expect you to repay them. During your mortgage application, you will need to present this letter to your lender. If you fail to provide asset documentation, they can flag your application as invalid.

Also Read: The Rules for Documenting Mortgage Down Payment Gifts

Undisclosed Seller-Buyer Deals

When buying a house with the help of a home loan financing, you need to disclose all deals made between you and the seller in the mortgage agreement. It is your responsibility to let your lender be aware of all transactions between you and the seller. For example, you learned about the amount needed to repair the roof of the house you want to buy. You made an offer, and the seller agrees. Hiding the fact that you made an offer, and the seller agreed to it is already committing mortgage fraud.

Fake Home Buyer

Some homeowner-wannabes are desperate to buy a house but fail to get approved for a mortgage. As a last resort, they ask their close friends or family members to get a mortgage instead of them reapplying for a home loan. Doing so is committing another mortgage fraud as you’re trying to trick your lender into thinking a qualified individual is applying for a mortgage. This puts a risk on the fake homebuyer since you’ll be using their name for the mortgage.

Occupancy Fraud

There are Mortgage Loans Corpus Christi that requires the homebuyer to use the real estate they wish to buy as their primary or secondary residence. Your lender will list all the types of property you can buy – depending on the type of mortgage you qualify for. You can end up having to pay a higher interest rate if your lender finds out you’re buying a non-owner occupied property.

Good Read: What Is Owner-Occupied for a Home Loan?