The Lies We Tell

Let’s be honest: we tell lies every day. Usually, we see them as harmless. For example, you may not exactly love your co-worker’s new haircut but you’re still going to tell them that they look great. By the book, this is a lie. A white lie, but still a lie. You might be tempted to fudge the specifics even when buying a house. We’re here to tell you… 

Don’t Do That. 

Even the whitest of lies can disrupt your chances at homeownership. Here are a few details to make sure you’re completely honest about. We mean it: when buying a home, being clear and up-front is your surest bet at being approved for a mortgage. 

Buying An Income Property

You have to be totally and completely honest about whether you’re buying a home to live in versus renting it out (either as a vacation rental or as a full-time rental property). It might seem like an innocuous detail but this lie amounts to mortgage fraud, which is an offense punishable by fines and even jail time. 

On-Time Payments

Don’t fib about paying every bill on time every month since the beginning of time. Lenders want to see that they’ll get a return on their investment and the only way to do that is to be honest with them. Honesty will win you more favor than hiding the facts. After all, lenders will probably see the facts in your credit score anyway. Might as well be up-front!

Down Payment Funds

Lots of buyers, whether first-time homebuyers or not, receive help when coming up with a down payment. It’s actually totally fine to get help footing the bill- you just have to be crystal clear with lenders about where the money came from. Whether it’s a free and clear gift or is intended to be repaid, you must disclose the source of your down payment. 

The bottom line: the more clear and honest you are, the better chance of being approved for a mortgage!