If you are like most people, your income may have varied lately, and it is hard to predict how your income will look over the next few months or years.
When you apply for a mortgage loan, you are required to state your income honestly. What you write down on the application form helps the lender decide whether or not to lend you the money for the property you want to buy.
It is not only what you write on the form, but what you do not write on the form that could lead to accusations of mortgage fraud.
How much your assets are worth may have changed in the last few months. A lender may consider other properties and assets you own when deciding how much of a mortgage they are willing to loan you. Some of your assets and properties may now be worth less than they were at the start of the year.
Mortgage lenders are aware of the risks the current global situation presents and are working out how best to minimize the chance of mortgage fraud. Measures may include carrying out valuations and income assessments closer to the final date of signing.
However, there are still gaps where mortgage lenders have not put in place new methods of working to cope with the current situation. If you recently began the process of applying for a new mortgage, you might want to consider whether the facts and figures you entered are still valid.
If you are accused of mortgage fraud, consult your local attorney to consider your options.