People's desire to achieve an approved home loan sometimes lead them to dropping some white lies to help them get through the process. It's understandable, but it's wrong, and totally not recommended. If you want the best results, you better tell nothing but the truth about your financial background. Besides, there is always a solution for everyone regardless of your actual financial stability. Sometimes you just gotta get informed, and usually, the worst that can happen is you have to wait a few more time to finally get the loan that you ought to have.
Here are some of the white lies that some borrowers say and why these lies aren't recommended at all:
Credit Record Info
There are borrowers who think that their skipped bills and past bankruptcies won't be determined by the lenders unless they share it. But the truth is, one of the first things that lending companies check when you apply for a loan is your credit score. So even if you lie about its negative sides, the lender will still know. This is why instead of appearing like a fraud, it's better to share the truth about your credit background regardless if the lender has already checked your credit history or not. This kind of information is vital for lenders to know how much they can let you borrow and what loan terms could be given to you. This is also why it's better to come to a lender with a good credit history so you don't have to experience difficulties trying to get a good loan. If your current credit score is not yet that appealing, waiting for a few more months as you redeem it would significantly help.
Not Disclosing All Expenses And Debts
Being honest in your application does not only protect lenders from losses, it also protects you from not being able to afford a loan that you get. This is the idea behind disclosing all your expenses, to allow for accurate calculations as to how much loan you can afford to pay. So whether it's just an extra credit card or child support fees, you're gonna have to share it with your lender. Besides, the lender may require you to submit bank statements extending to around six months. They're still gonna see your expenses, so you might as well say where your money goes.
Exaggerating Your Income
It's quite hard to overstate your income when applying for a loan because for starters, the lender will verify all your statements. So if you state another financial source aside from your job, it should be verified before it can be considered. If there are no ways of proving that income source, it might not contribute to your chances of getting a big loan, or at least an approval for that matter.
If you're employed, you wouldn't also be able to lie about your salary because the lender will most likely require your recent pay slips. If you're self employed, copies of tax returns should also be presented.