People who are trying to get a mortgage on a home will go through a very complex process to ensure they’re able to handle the financial responsibility that comes with this major life event. It doesn’t necessarily matter to the mortgage company that you’ve been paying $1,500 per month in rent for the past decade without ever being late. Instead, the mortgage company checks for income and creditworthiness.
There are a lot of forms to fill out and documentation to provide when you’re trying to get a mortgage. You must ensure that you’re only stating the truth during this. Trying to inflate your income or make the property seem like it’s worth more than it is are two examples of trying to get over on the system.
Mistruths on mortgage applications are illegal
People who don’t tell the truth on mortgage applications or produce altered documentation to seem like a more attractive borrower are committing mortgage fraud. You can face serious fines and even time in prison if you’re found guilty of this crime.
Many cases of mortgage fraud are levied against professionals in the mortgage industry, but it isn’t unheard of for potential borrowers to face charges. The best thing to do is to always tell the truth so you don’t face what’s been dubbed as “fraud for housing.”
Anyone who’s dealing with mortgages must ensure they’re only providing factual information. Investigations into mortgage fraud should be taken very seriously. If you find out that you’re the subject of one of these, make sure that you take steps to protect yourself. Having someone on your side to help you determine what options you have is valuable if you do end up facing criminal charges.
