Need advise dealing with banks...

[Will Pardo]

Hello all, So I have my HELOC. I have access to the MLS through a great broker who is willing to help me out. I’m also in the process of trying to get prequalified. I’d like to shop around with other banks but I’m curious if I should be telling them the mortgage is for a rental property or a purchase of a 2nd home? In addition, do I even say that I’m using the HELOC for the down payment or not? Any advice or opinions are welcomed. Thanks!

[Matt K.]

If you want to avoid mortgage fraud then you probably should answer the questions you're asked honestly. The first one being what type of home property will this be, answer being investment property.  Now if you're actually able to meet the detention of 2nd home and that's your intent then by all means say that...

Now for the second part, they're going to know about the HELOC and it'll impact your DTI. It's unlikely they will ask you where you're down payment comes from, but if they do, answer the question. If you it goes against you, better find out now before you have something you need to close on.

I've found it easier to tell my lender what I'm doing/what my goals are. He helped me find the easiest/most efficient way to them. The bank has rules they must follow, but if they can find a way to get you money, they will because that's how they make money (and all the people along the way of your purchase).