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IDEA: Let’s Hide a Few Assets!

Very Bad Idea.

A mortgage broker will help compile your mortgage application paperwork so that:

  • your financial condition is accurately depicted,
  • the lender will be able to more easily and efficiently review your file, and
  • you are portrayed in the best possible light.

The whole idea is to present a thorough, well-organized package to expedite a sound credit underwriting decision for your benefit.

A good broker should make it so easy for the underwriter, that practically all of their work will be completed for them in advance – which they will very much appreciate.  This includes identifying any and all risks, and the corresponding mitigants that will, ideally, allow the underwriter to quickly approve your loan request.

An incomplete, disheveled submission not only reflects poorly on the broker (who should be keenly focused on their reputation), but it will underscore the fact that you are just not ready to obtain a mortgage.

The absolute worst thing is to omit critical information from the submission.  Sometimes a borrower will not disclose certain assets they own – thinking that the additional equity or liquidity are not required.

“My reported net worth is sufficient without having to disclose my other rental properties”

Lenders run ownership reports designed to uncover everything.  If you sign a loan application that is obviously missing material assets, it will be an uphill battle once the error is discovered.  Inadvertent omission is one thing, but intentional omission is likely to be perceived as fraud by the lender.

Here’s the Point: Asking your mortgage broker to hide something from the lender is tantamount to fraud, and there is no place for that in any industry.
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