Applying for a Mortgage? Don’t Lie About These 5 Things

Applying for a mortgage can feel overwhelming. With all the forms and questions, it’s tempting to smooth over details to look more qualified. But even small lies can cause big problems. Lenders rely on your information to figure out if you’re truly ready to take on a home loan. If something doesn’t add up, your application might get delayed or denied altogether.

Being honest from the start makes everything easier. It helps your lender find the best loan for you and avoids last-minute surprises. One lie, however big or small, can delay or even kill your loan. It’s not just about checking boxes. It’s about showing that you’re ready to take on a home.

Here are five things you should never lie about when applying for a mortgage.

1. Income

Some buyers exaggerate their income. They add extra side jobs or inflate salary numbers.

Your lender uses your income to see if you can handle the monthly mortgage payment. They compare it to your existing debts. This helps them decide how much they’re willing to lend.

If your income doesn’t match your tax returns or pay stubs, your loan could fall apart. Even if you’re pre-approved, the truth will come out in the verification process.

For example, if you report $90,000 but your documents show $65,000, your approval might be canceled the week before closing. That’s not a surprise you want.

2. Employment Status

Some people don’t report a recent job loss or switch. Others claim they’re full-time when they’re part-time or on a contract.

Lenders check how steady your job is. They want to see a consistent income. A sudden job change can signal risk.

If your lender calls your employer and finds out you left, your mortgage approval may be withdrawn. It doesn’t matter if you already signed a contract on a house.

Be upfront. If your job situation changes, tell your lender right away.

3. Debt

Many buyers try to hide debt. Credit cards, student loans, personal loans—they think lenders won’t notice.

Your lender will pull your credit report. They’ll see every account and balance. If your numbers don’t match, that raises red flags.

Say you have $15,000 in student loans, but didn’t mention it. Your lender sees it and questions everything else. That can delay your loan or lead to a denial.

List everything. It helps your lender give you the right loan.

4. Down Payment Funds

Buyers often say their down payment is from savings when it’s really a gift or loan. That can be a problem.

Lenders need to know where your money comes from. They want to make sure you’re not borrowing your down payment. They’ll review your bank statements. If they see a large deposit with no explanation, they’ll ask questions. If you can’t prove it’s a gift or show proper documentation, your loan could get held up.

Always tell your lender the real source. If it’s a gift, get a gift letter from the person who gave it to you.

5. Intent to Live in the Home

Some buyers say they’ll live in the home but plan to rent it out. They do this to get better loan terms.

This is a mistake. Loans for primary residences come with better rates and lower down payments. But they come with expectations too. If your lender finds out you don’t plan to live there, they may cancel the loan. It could also cause problems later if the loan terms were based on false info.

Be honest about your plans. If it’s an investment property, apply for the right type of loan.

Tell the Truth from the Start

Lying on a mortgage application creates more problems than it solves. Lenders don’t expect perfection. They expect honesty. Clear, accurate information helps your lender find the best path for you. If something changes—job, income, debts—speak up. Being upfront about your income, job, debts, and plans helps them find the right loan for your situation.

You’re not just filling out paperwork. You’re building trust and setting yourself up to own a home.