Vienna office: (703)-378-1395 enesheim@titleonegroup.com

The legal process and procedures involved in buying a home can be incredibly confusing and stressful. What can be even scarier are the repercussions of not understanding the process or the importance of your legal advising team throughout the process. There are numerous things that you have to keep in mind when going through the home buying and mortgage process and one of them is the importance of honesty. While making lifetime decisions that will surely affect the future you must be honest with yourself and the people who are working with you. There are many different circumstances where you can get into trouble by not being honest and these small lies could lead to giant problems with the law.

One of the most common problems in housing market negotiations is lying about your intended purpose of use for the property that you are purchasing. Mortgage rates differ based on intent of use for the property. An investment property that you plan on renting out typically carries a higher interest rate and larger down payment because of the higher risks involved. On the contrary however, owner occupied loans will have lower rates because of less risk involved. One technique many people try is to apply for an owner occupied loan, but after approved, rent out the residence to others. This is a really big problem that carries harsh consequences. Attempting this is not a smart idea because if you are caught you can serve up to five years in prison as loan fraud is a United States felony. Title One Settlement Group recommends honesty in every home buying or selling transaction. While loan fraud is the most common type of mortgage fraud, it is not the only type. Be honest with yourself and the other parties involved and you will be much better off! If you have any more questions about this or want to find out more information, don’t hesitate to call us!