The One Thing You Should Never Tell Your Mortgage Broker

Private Money Loans in Santa Rosa, CA | Sonoma County | Private Money Lenders

There is a simple Yes or No question on the standard mortgage application that can get you into hot water if not answered truthfully.

How you answer this question can make a difference on the kind of loan program you qualify for.

It will determine the interest rate you will be offered by a lender.

It can make the difference in how much money you need to come up with for your down payment and closing costs.

In fact, the information you provide on this specific part of the loan application can actually make or break a deal. (Depending on your situation, of course.)

Aside from getting your loan approved or not, there are serious legal consequences for not answering the question honestly.

Some people might make this mistake innocently, but there are other people out there who intentionally make false statements on their application for their own benefit.

So what exactly is this thing that’s so important on your loan application?


More specifically, it is your Intended Occupancy. In other words, do you plan to live in the property or not?

This is how the question reads on the Uniform Residential Loan Application (Form 1003):

Do you intend to occupy the property as your primary residence?     

The question is so important that it’s actually typed in bold font.

At a glance, it doesn’t appear to be very important because it’s listed after other personal questions regarding your history of foreclosures, bankruptcy, and citizenship status.

But it is.

The reality is that a lot of people are making major financial (lending or investing) decisions based on the information you provide on your application.

So here’s the deal…

Never tell your loan officer, bank, or lender that you are going to live in a property if you really won’t.

On the other hand, do not tell your lender that you are going to buy a property as an investment when you actually plan on moving in and making it your primary home.

In Plain English, lying on a mortgage application is fraud.

A lot of people make the common mistake of telling the Loan Officer what they ‘think’ the Loan Officer wants to hear.

So just tell your mortgage professional exactly what your situation is and what your future plans are. A licensed mortgage broker can represent you in finding the right financing option that you actually qualify for – legally.

Always start with the truth and then let your broker go to work for you based on real facts. A professional broker should always work hard to protect the interests of the parties involved in a loan transaction.

You just might be surprised to know that there are different types of financing that could possibly fit your unique situation.

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