When you have found the home of your dreams, you don’t want any minor issues to get in the way of the final purchase. You may even be inclined to skew the truth a little bit in order to move your application process further along in hopes of securing that gorgeous house. However, in trying to acquire your loan from the lender, make sure that you are completely honest with your mortgage broker, as a lack of honesty later on could harm you even more. Remember that your mortgage broker works closely with lenders, and the broker is able to communicate any circumstances to the lender you aren’t able to, but in order to do so effectively you mustn’t leave out important information. We’ll take a look at a few specific areas where any trace of lie could definitely harm you in trying to secure a loan.
A lender will look at your personal credit record which will include any missed bills, even ones as minor as a missing phone bill, or as large as a bankruptcy from the past. Any type of events such as those will deter a lender from wanting to grant you the loan, so arrange your broker to obtain a copy of your credit record. If there are any discouraging marks, talk about it with your broker, and come to a course of action of a sensible to way to clean up your history, or if that can’t be done, find a way to explain those parts of your credit history to the lender. As a lesson for the future, get into the habit of checking up on your credit history so that there are not surprises in situations like these.
It is also important to disclose other debts or accounts you may have to the lender, such as an emergency credit card. The lender will have possession of your bank statements from present to six months prior, so they will be aware of where your finances are going, which could include payments like child support or alimony. Lying or not disclosing such things will be of no use, since the information will be right in front of them. Also, the lender will verify all of the financial information you give to them, so it is of no use over-stating your income. They may also ask to see copies of your latest tax returns if you are self-employed, which will also reveal how much you are earning, and if you are honest in this regard as well.
When it comes to supplying the deposit of the house, if a friend or family member helps you complete the deposit, it can complicate the matter of securing a loan. The deposit reveals that you are able to manage loan repayments, yet if the deposit partially comes from someone else, that assumption is not true, for you needed a last minute contribution from someone to complete your deposit. Also, repaying a personal loan may conflict even more with your mortgage repayments. Therefore, if the personal loan is a gift, be sure to request a letter from the giver that states the money doesn’t need to be paid back.