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Do Everyone a Favor....Don't Lie on Your Mortgage Application.

By
Real Estate Agent with Sabinske & Associates, Inc. (Albertville, St. Michael)

Thinking about fudging numbers on your mortgage application? 

 

Don’t. 

 

Don’t do it if you are my client or someone else’s. 

 

You are wasting everyone’s time.  Off the bat, you just wasted your own time, my time, the seller’s time, the seller’s agent’s time, the brokerages on both sides time, the loan officer’s ‘ the loan processor’s and probably some other people’s whom I can’t think of right now.

 

Your income….really?  You were on workmen’s comp, but failed to mention that.  Student loans were paid late or are in arrears?   Your divorce isn’t final and your soon-to-be-ex spouse is refinancing?  But, in his or her own good time, and not before you want to close? 

 

No problem.  But, why are you bothering all of us and making us do our jobs, if you can’t do yours? 

 

Please, before you begin the hunt for a new home, meet with a lender, and TELL THE WHOLE TRUTH., the whole unvarnished, blemished and uncomfortable truth. 

 

Honestly, the lender won’t judge you, but advise you how to be proceed to clean up the details so that when you are scrubbed and have a decent credit score and are credit-worthy, you can begin to find your new home. 

 

Until then….don’t call me.  Please.

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The information contained in this blog is believed to be true and correct and while every effort is made to ensure that the information is as accurate as possible, the author of this blog, and its comments disclaim any implied warranty or representation about its accuracy for any particular purpose. All information is copy written and the property of Suzanne McLaughlin.. 

For more information about real estate values in your area, give me a call or email me at 763-497-1870 or mclaughlinhomes@gmail.com  

Suzanne McLaughlin

Sabinske & Associates, Inc.    

When you need to buy or sell in St. Michael or Albertville Minnesota, or anywhere in Wright County, Sherburne County or Anoka County or Hennepin County, give me a call! 

Comments (17)

Jennifer Chiongbian
Specializing in all types of Manhattan apts & townhouses - Manhattan, NY
Real Estate Broker - NYC

I have to tally agree on this one.  Nothing worse than a "surprise" that they think won't come out in the end.  We can't help them unless we know the whole story!

Jun 20, 2012 09:55 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Hi Suzanne,

You are so right! These little surprises hurt everyone in a transaction! The whole story needs to be out on the table!!

Jun 20, 2012 10:03 AM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Suzanne sounds like somebody got your goat today.  Why people 'fudge' or flat out lie on their mortgage applications is a mystery to me. Do they really think they're not going to be found out?  And as you pointed out - they just wasted a lot of peoples time.  Just don't do it - just don't!

Jun 20, 2012 10:22 AM
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Do Everyone a Favor....Don't Lie on Your Mortgage Application. 

Suzanne, fudging the numbers will only bring you a loss so don't go there.  If you're dealing with this now my friend hope you can shake it off soon... Grrrrr. 

Jun 20, 2012 10:44 AM
Ron Marshall
Marshall Enterprises - Saint Michael, MN
Birdhouse Builder Extraordinaire

I cannot believe that in this day and age, when "Big Brother" is everywhere, that people think that they could possibly lie, or fudge, on a mortgage application.  Sorry it happened to you.  I know you put your clients first, and when they lie, that cuts to the quick.

Jun 20, 2012 11:03 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Suzanne -- I'm rather cautious with some lenders when I receive an offer with a somewhat dubious pre-approval letter and some rather cagey responses when I phone.  As John McCormack stated in his comment - I hope this is not an example from a current situation and if so -- I hope it works out positively very quickly.   

Jun 20, 2012 11:12 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I had a guy a few years ago didn't report 6 credit cards with over $40,000 on them. Didn't think we would find out.  Luckily we found it real early in the process.

Jun 20, 2012 11:39 AM
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Suzanne,

In commercial real estate, we used to prequal on the phoe.  For a lease, I would always ask, can you show the landlord a good financial statement, if they would hem and haw, I would know immediately.  I think people in their goodness leave a lot of telltale clues.  A

Jun 20, 2012 11:57 AM
Don Sabinske
Don Sabinske, Sabinske & Associates Inc. - Zimmerman, MN
Sabinske & Associates Inc.

Wow, Red.  This was a shot out of the blue.  I hope that it can be saved.

Jun 20, 2012 12:05 PM
Jill Sackler
Charles Rutenberg Realty Inc. 516-575-7500 - Long Beach, NY
LI South Shore Real Estate - Broker Associate

I get the distinct impression that this is not a hypothetical situation. Sorry about that.

Jun 20, 2012 12:14 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730
Suzanne, I too tell my buyers to come clean with the lender then let the lender decide what is relevant and what is not. Good post. Suggested it.
Jun 20, 2012 01:36 PM
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

I tell my clients to be 100% forthcoming with all information.  You try to deceive me, and we are done!  Sorry, I am not risking my mortgage license on a fraudulent loan.

Jun 20, 2012 01:52 PM
Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota/Wisconsin Real Estate Expert

There is no way around the underwriting and documentation of the loan.  You just cant lie and get a home.

Jun 20, 2012 03:06 PM
Al Raymondi
Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL
Ormond By The Sea Florida - Home and Condo Sales

The truth is always the best answer Suzanne, and many lenders will help resolve issues in hopes they get the future business.

Jun 20, 2012 09:37 PM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Kick the guy to the curb, just like this wife did. You don't need this kind of time waster.

Jun 20, 2012 11:07 PM
Suzanne McLaughlin
Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN
Sabinske & Associates, Realtor

My loan officer has performed miracles with this one.  He worked with the client after getting to the bottom of each "discrepany".  The borrower said that he/she understood, but didn't. and didn't and didn't.  But, I think we will still close the deal.  And my loan officer deserves a trophy for this one!

Jun 21, 2012 09:18 AM
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Suzanne,

Excellent advice. I cannot figure out why some folks will lie when applying for a loan. makes no sense to me and loan officers certainly do not judge you. Frankly they could care less most of time about all of your stange issues.

Jun 22, 2012 04:24 AM