Applying for a mortgage is a major decision in your life because you are pretty much giving up ownership of your property until the time that you pay back the amount with compounded interest.
Getting a mortgage is different from selling a property because you are expected to return the money you took in exchange for your place, and you can take full ownership the day the payment is complete. Being able to return the money, however, depends on your financial status, and some people who do not have sufficient monetary stability write false information on their application. Here’s why that might be a bad idea.
1. Caught by Law
The law does not favor anyone who is caught for fraudulency, and that is exactly the kind of label you can expect on your profile if you are caught for providing false information. Mostly these frauds are classified under property or housing fraud, but depending on your income status and career orientation the label can be a massive blow to progression.
Being caught for fraudulency obviously depends on how careless you were in covering your trail, but do you really wish to take that risk now that more and more organizations are practicing fraud prevention measures?
2. Inability to Return
Even if you successfully convince your contacted financial institution, the fact that you might not be able to arrange the money on time still remains. In the short run, the bigger loan might just be able to get you the edge you need in business, but in the event that the investment does not work according to your expectations, the pressure of returning the amount on you will be insurmountable.
What’s worse is if your lender figures out that you were never able to pay on time, the chances of you qualifying for a mortgage ever again will be grim.
3. Stricter Punishments
It does not matter whether you went on with providing false information by your own willingness or using the advice of your mortgage broker; the only authority that will be challenged and charged with fraud will be you. And you will be mistaken if you feel that the law will let you off easy.
In recent years, the fine you have to pay for being caught in these circumstances has been on the rise. Because of stricter regulation, the number of people committing such hybrid crimes has also fallen, which means that it is easier for you to be caught now than it was before.
4. Morally Wrong
To value or not to value ethics is a personal decision, but would you really be able to sleep well at night knowing that you committed a crime which you will now try to justify?
When you weigh the benefits of going with providing false information with simply taking up a loan according to your financial position, you will realize that the fraud was never really worth the ethical challenge you shall face against your own conscious. So for all tangible and intangible reasons such, never lie on your mortgage application.
Posted by Randy Blakeslee - GetnSocial
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