When the house of your dreams goes on the market, the only thing standing between you and a fairy-tale future is your ability to secure an adequate mortgage with terms that actually work for you.
You know that you will do everything in your power to repay the mortgage, but you may worry that the lender won’t give you a good enough rate or a high enough mortgage amount to make a competitive offer on the property. If you only have one chance, you may take desperate action to buy your dream home.
Inflating your income, having your friend pose as an investment banker and lie about what resources you have or otherwise misrepresenting your circumstances on your mortgage application could put you in a position to buy that house, but it could also eventually result in you facing criminal charges as well.
Lying on a mortgage application is mortgage fraud
When you intentionally misrepresent or exaggerated your assets and circumstances on a mortgage application, your lies impact the ability of the company to properly estimate the risk it will take if it offers you a mortgage.
If the company winds up in a situation where it may lose money, such as a scenario where you default on the mortgage, they may scrutinize the information you provided and take action against you. While losing out on a home that seems perfect to you can seem unfair, if you truly can’t afford it, it isn’t the right home for you at this moment.
Anyone accused of crimes such as mortgage fraud needs to start planning to defend themselves or risk consequences that could impact their finances and their freedom.