Pro tip of the day: Don't lie to your mortgage broker!

[Stephanie P.]

Don't lie to the mortgage broker. It just wastes everyone's time.

We had a loan that was close to close.  Title was ordered.  Appraisal ordered and paid for.  Hazard insurance updated with the new lender's mortgagee clause and the borrower says:

"Will they have room to pay off the loan I took out when I bought the property?"

I'm not kidding.

But Miss Borrower, you said you paid cash last year for the property.  We've been waiting on your most recent bank statements for reserves and we're almost done.  Everyone should have everything to me by Monday. What do you mean "pay off the loan". There should be no loan because said there was no loan.  

Is this a lien on title or just a personal loan.  Were these credit cards you're trying to pay off or is this a mortgage?

Crickets

Next day, Miss Borrower says; "It's a mortgage.  I didn't pay March and the demand letter says I need to pay the balance by the end of April.  I attached the demand letter."

There goes the new loan.

For all you new investors out there, tell you mortgage broker everything and tell them the truth when they ask you questions.  It will save you money, time and effort.

Stephanie