Don’t Make Any False Moves

Falsifying information on a loan application is fraud that could lead to federal and state prosecution. It doesn’t matter whether or not you were coached into hiding bad credit, reporting phantom income or “looking the other way.” You’re guilty, and the consequences could be serious.

For one thing, you could end up with a loan you can’t afford, and the result of that could be losing your house. But there are also civil and criminal penalties. You could wind up in jail.

“If anyone connected with the transaction tells you not to say anything to the lender,” said mortgage-fraud expert Connie Wilson, “you can bet it’s something that’s not kosher.”

Also, don’t sign any forms that are left blank. False information can be filled in later. And don’t be in a hurry at closing. Take the time to read the typed loan application you are asked to sign to make sure all the information is correct. It is too easy for a corrupt loan broker to change a few numbers in your favor.