Compare Mortgage Quotes

Guest

I'm planning to buy a property and I also have a good credit Smile

But my problem is that I don't have assets which are needed to get a good rate. I have a friend who has offered to move me on to one of his bank accounts so I will be able to show more reserves than I actually have. He will be charging me a fee for this. Once the deal passes through, I will be removed from his account. I really need to know if this transaction is 100% legit.

sara · Posted: Fri Aug 05, 2011 12:11 am Post subject:

Hi Johan,

This is absolutely illegitimate!! How can you show someone else's money as your own and consider it to be legitimate? When you sign your loan application, you attest the fact that you’re truthful in providing all the information. Signing to this statement and then using someone else's account to show your cash reserves will show your double standards and if caught, the lender may immediately demand the loan in full and can even take legal actions against you.

Also, please remember that showing higher cash reserves will not get you a better price unless you will be using the cash reserves to increase your down payment. You can't do so because it’s not your money!!

While buying a property, be rest assured that there will be unanticipated expenses. That is reason why lenders ask for cash reserves. If you can't meet this requirement on your own, I will suggest you to reconsider your decision of purchasing a property.

Take care.

sabrinatoss · Posted: Fri Aug 05, 2011 2:15 am Post subject: hi Johan!

It is not a good move. How about taking a guarantor home loan. It is much safer with that.

alanjacobson · Joined: 05 Apr 2009 Posts: 5 2.43 Dollars($)

Sara's message says it all. The two biggest issues are the fact that they want you to have reserves for a legit reason - because buying a home comes with financial uncertainty and the lender wants to know that you can meet these challenges AND you should also know that you can meet these challenges. In addition, lenders can and very often do catch things like you are describing, and as Sara suggests, if it is after the fact it can lead to a huge mess. Its great that you have a good credit score, so my suggestion is to get what you can get without doing anything about your assets...