Brooklyn Home Buyers – Truth in Borrowing
What should you do when your mortgage broker or loan officer suggests you “exaggerate” some information on your loan application?
Just say no.
It may be tempting when you’ve found your dream home in your favorite neighborhood, or you’re desperate to get out of your current living conditions, but there are several reasons why honesty is the 
best policy.
- Its Illegal. When you sign your name to loan documents, you are certifying that the information is true. If the information is not, you are committing mortgage fraud and you can be prosecuted.
- You can end up owning a property you just can’t afford, and find yourself facing foreclosure (which is what has happened to thousands of home buyers in recent months).
- Loan fraud costs all borrowers in the long run because lenders will eventually recoup their loses by raising fees and charging higher interest rates.
So be sure that the loan documents you sign are filled out truthfully. It’s the right thing to do and in the long run, its better for everyone.
