By Michelle Mann

Lying is easiest when the one thing that stands in the way of what we want, is a little ‘small fib.’ However, a minor mistruth that can lead you into big trouble is not telling the truth when filling out loan applications, especially home loans.

Lots of us were taught by our parents and secondary school instructors that it is wrong to lie. We understand this fundamentally. We understand that when we lie we run the risk of being found out and then embarrassingly, having to find a way to cover our tracks. However, lying may do much far worse then only cause of shame, it may also land us in jail.

Whether it is your plan or the loan officer to not tell the truth on the loan application, you both can end up in hot water. The result will not be a minor slap on the hand, but big time trouble like jail time and/or large monetary.


There are many methods to misrepresent the truth on the application form. A person may manipulate their income or lower their stated expenses. Because a W-2 form is required for the majority of lending applications, telling untruths in regard to an individual’s income generally occurs with stated income loans. They do not have to provide proof of their income. Someone can also not tell the truth regarding whether or not they are work for themselves and could possibly even falsify lease agreements so that a mortgage company might be willing to offer them money.

Please note, before you agree to not tell the truth, know that once you sign your name on the dotted line, you open up yourself to criminal and civil penalties. It is against the law to lie about what is included on these documents. It is extremely serious and you will end up regretting it after you are caught. Being truthful and letting the chips fall where they will, enables you to sleep beautifully during the night, and do not have to stress about if anyone has uncovered your half-truths.

Being scared of being caught, is most times the worse part of not telling the truth. If you really would think about it, having a particular house or piece of property, is not worth the embarrassment and shame that an individual will face if you get caught. Also, if you are in jail, you will not even be able to enjoy the home or property that you place so much at risk for.

Not telling the truth to get loans, any type of loan, is taking on an amount of risk that surely is not necessary. The ends will not justify the method, especially if a person gets busted. Being forced to handle with angry authorities and having to find lawyers to enable keep you out of the slammer, is too much risk to handle for a loan. You will do much better to wait and save until you have the funds that you have to have. If you choose to do so, you will be able to sleep much more peacefully overnight because you will not be at the mercy of the lawyers and judges.

In the end, avoid lying to get loans. While you could temporarily get the funds or property that you want, not only do you run the risk of getting busted, but you will likely not even be able to afford it and will likely lose it anyhow. An individual will not only lose their home but a small piece of their integrity.

About the Author: Learn how to get the most out of your financial life. Visit: for free tips and information!


Permanent Link:

Categories: Insurance