Expert Advice When You Need It Most
Posted about 3 years ago. Applies to Florida, 2 helpful votes, 0 comments
1
Do Not LieDo not lie on a mortgage application. Answer all of the questions truthfully. If your mortgage broker tells you that "everybody stretches the truth on mortgage applications," do not believe the broker and find somewhere else to get a mortgage. Making false statements on a mortgage application is a crime. 2
Do Not Leave BlanksDo not leave any blanks on your mortgage application. Some unscrupulous mortgage brokers have been known to fill in blanks with false information to help secure the mortgage. If a particular question does not apply write "N/A" in the blank or draw a line through the blank. 3
Beware of "creative financing"The term "creative financing" has been over used and frequently is a code for "let's work a scam on the mortgage lender." Be vary wary if a mortgage broker or a real estate agent proposes using "creative financing" to get a loan for which you would not otherwise qualify. 4
Only one HUD-1There should be only one version of the HUD-1 settlement statement at a closing (although you will probably have to sign multiple copies). If a mortgage broker or closing agents tells you that you have to sign two different versions of a HUD-1 for the closing to take place, there is something wrong, and you should consult an experienced real estate lawyer before proceeding. 5
Do not inflate the purchase price.Do not participate in any deal in which you inflate the purchase price and the seller gives you the cash you need to make the deal happen. 6
Do not "lend" or "borrow" creditSome mortgage brokers try to get loans for borrowers by "borrowing" credit from someone else - using someone else's social security number instead of the borrower's. Do not participate in any deal in which you "borrow" someone else's credit to get a loan. Do not agree to "lend" your credit to someone else to help them get a loan. 7
Review your loan application at closing.At your closing, you will be given a computer printed copy of the mortgage application you submitted earlier. Review this carefully to make sure that no one has inserted any incorrect information in the application you filed. Additional ResourcesYou can get other information from mortgage lenders and from the U.S. Department of Housing and Urban Development. Related Questions1 Attorney answers: 
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