Nobody should be running around saying that buyers are liars. Buyers just don't always know what they really want, and THAT is one big piece of our job security. But sometimes, when it comes to financing, customers may flat out lie to you or withhold information that they are afraid will keep them from qualifying for a home.
One of the things I've learned over the last few years of lending (and I can give you specific examples) is to not dismiss a lie, no matter how little or how justifiable. Because if they are okay with lying, there will be other lies that follow, or at least omissions. The problem for them is: We usually find out.... eventually... maybe the week of closing....
One example: someone last year lied to their landlord about the reason they were moving so that they could get out of their lease (said they were PCSing.... so he was a little surprised when we called for a rental verification to buy a house here). He was understanding and let them out of their lease anyway.
Then near the end, nothing was adding up. They said they would communicate any issues to their Realtor and did not want me talking to their Realtor about their finances. The Realtors and sellers were totally mis-informed... because that wasn't the last of the un-truths and omissions.
Soooooo.... When I find out a borrower is pretending they plan to live in an investment property as their primary residence.... I'm not going to help them find an alternative that will work. If I find a lie on a loan application, it doesn't get "corrected", it gets shredded.
Just tell me the truth, the whole truth, and nothing but the truth. You may not know all of your options, but I do. You wouldn't lie to your defense attorney. Don't lie to your lender either.
It's not just buyers either. Do you have a seller who wants to omit something from the property disclosure? They might make it sound innocent enough... But if they're willing to lie once, they'll do it again.
Fool me once, shame on you. Fool me twice, shame on me.
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