Home arrow Mortgage Forums arrow Loan Talk for First Time Home Buyers arrow

Legitimate transaction

Author Message
Johan

Guest







Post Posted: Thu Aug 04, 2011 11:25 pm    Post subject: Legitimate transaction
Like 0
Dislike 0

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.
_________________
Need help choosing the right loan? Get free consultation from community lenders/consultant
Icon Mini Profile sara
sara
Moderator



Joined: 05 Jul 2006

Posts: 2699
Location: New Brunswick, New Jersey
497.27 Dollars($)
Post Posted: Fri Aug 05, 2011 12:11 am    Post subject:
Like 0
Dislike 0

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.
Icon Mini Profile sabrinatoss
sabrinatoss
Community Expert
Community Expert



Joined: 16 Jan 2011

Posts: 516
Location: Australia
82.74 Dollars($)
Post Posted: Fri Aug 05, 2011 2:15 am    Post subject: hi Johan!
Like 0
Dislike 0

It is not a good move. How about taking a guarantor home loan. It is much safer with that.
_________________
Home Loan, Mortgage Insurance Calculator, Mortgage Broker
Icon Mini Profile alanjacobson
alanjacobson




Joined: 05 Apr 2009

Posts: 5

2.43 Dollars($)
Post Posted: Sat Aug 06, 2011 3:14 am    Post subject:
Like 0
Dislike 0

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...
_________________
My independent blog about Refinance Loans: http://www.refiloans.org

See also: Are No Cost Loans Worth It?: http://nocostloans.org
About Title Insurance: http://www.titleinsurancepolicies.com
Is a 10 year mortgage for you?: http://www.10yearrates.com
Quick Reply
Your Name
Subject
Image Verification


Can't read the image? click here to refresh
Message body

All times are GMT - 7 Hours
Page 1 of 1

 
Highlights

Bookmark this page

Helpful References

Mortgage Guide
Mortgage Terms
Mortgage News
Book Center
Shop and Compare lenders
30 Yr. Fixed Vs. 5/1 ARM


Calculators

     [View all]
Are you eligible for loan?
How much you can afford?
Calculate monthly payment
Calculate APR


Financial Tools

Credit Repair Tool New
Mortgage Planner
Simple Budgeting Tool


Our Community

MortgageFit Blog
Community Professionals
Community Rewards
Introduce yourself
Website tools


Community Rewards

Five simple ways to earn money with the Mortgage Community.

MortgageFit on Twitter

Followers (252)











We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0
Page loaded in 0.070 seconds.