How to Avoid Financial Pitfalls

How to Avoid Financial Pitfalls

Buying a house is a long-term financial obligation. Legal documents must be filled out and signed, and the responsibilites are understood so you don't become a victim of fraud.

When applying for a loan on your house the information you submit must be complete and accurate, and if it isn't, it is considered fraud.

there are individuals who will try to persuade you to lie about your qualifications so they receive income at your expense. These people look like they're trying to help and be your friend; however they are only downplaying the seriousness of complying with the law. Don't let yourself be fooled by these people because they claim they are just rules everyone ignores, but they are just cutting the edges and trying to earn a profit. Here are some tips to avoid being caught in a financial pitfall.

Be Smart- Don't sign anything unless you have read and completely understand the document. Do not sign any blank documents. It is very important to properly and honestly report your income, assets, debts, and employment. Refuse to buy property or borrow money from anyone. The disclosure of loans isn't a formality, its the law, so you have the right to know.

Be Honest- Do not change your income tax returns under any circumstances. Tell the entire truth about money gifts. Do not list fake money borrows on your loan application. It is important to be truthful about credit issues, past and present. Be honest about your intention to occupt the house. Lastly, do not provide false documentation.

Don-t be Discouraged- Obstacles may appear as you submit your loan application. Not to worry, everything will be fine and you will figure out how to resolve these problems. If your application is rejected, you need to find what the problem is and how it can be resolved. Possibly look for a less expensive house or save more money for your down payment. Also check around for possible and affordable housing programs you could be eligible for to help you through the home buying process.

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