Anytime you lie of course, and get caught and lie more to cover that lie.Let me set up one of the recent events for you in which a lie caused more trouble that it was worth.
A deal that appeared like any other came across my desk as a referral from one of the great Realtors in Calgary. We went through the motions of getting the pre-approval done so shopping could begin. I had all the documents with a one exception which the client insisted was not a problem, he just could not print the proof as it was in an investment so could I condition the pre-approval to getting this last document. To which my reply was. “That is not how I do things as I don't want to waste a Realtor's time, your time or mine for that fact.” Not accepting this answer the pressure increased, so I finally bent and conditioned the pre-approval to further verification of this “guaranteed” down payment. With his upper limit in hand the shopping began. Months later a place was found that matched his approval.
Tip of Wisdom #1
You might want to ensure you have realistic expectation of your price and
market before you begin for this process to go smooth. Don’t go looking at perfect million dollar
properties with a half million dollar budget. 
OK, so where is the drama and the lie that destroyed everything you are wondering?
Let me fast track it then. The property was found, the offer made, and the deal was approved with the standard conditions. When the conditions were disclosed the story began to change, and change again. This story went from personal savings, to gifted, to gift from out of country, then gifted by brothers, sisters, cousins, and parents with over 10 different transactions all starting after the pre-approval was dated. When the documents came in most of it was just gifted in the last 30 days and moved around so much that is was tricky to follow. Which leads me to:
Tip of Wisdom #2
When the day comes to waive the condition of financing, and you don't have a
written thumbs up from your Mortgage Advisor saying all the conditions have been
met:
DON'T WAIVE!
Back out, get your deposit back and regroup. Solve the issue and remove the risk associated with the bank and your situation, or the source documents you have to provide as part of the due diligence. Find a new property that has lower property taxes, lower condo fees, lower costs, or wait till the gifted funds have been in the account long enough that is does not look to the bank like you are a drug lord, or laundering money.
If you are the client sitting there with your Realtor, figuring out if you should waive, walk away or get an extension then many things may cross your mind. Once invested in the lie to get the deal done, the chances of backing down become slimmer. Not completely honest when trying to get that mortgage, could put you in a situation where you are so vested in the outcome that pride will not let your common sense win when it is telling you to walk away. If there was honesty from the start we could have dealt with the issues, put a plan in place and not have to resort to leaving a wife and kids.
Numbers don't lie.
I can make them dance,
but they don’t lie.
You should consider your mortgage advisor akin to your lawyer. Yes, we want you to win in court! Would you lie to your lawyer? Not a chance right? We work for you after all. Our job is not only to show you in your best light but paint a picture to the courts as to why you are worthy of attention and affection. To find you the perfect mortgage from all the lenders out there, and get a great mortgage rate with privileges suited to your specific circumstance and needs. We know what precedence has been set in this court as we work it every day in excess of full-time hours.
Word to the wise:
If you tell me you are on EI, and working under the table, I am not going to throw you under the bus, but I might just get you on that bus and drive you over the tracks where you have a better chance of owning a home.
Call me, our team can figure out a plan for you.
403-807-8779
By: Michael Richmond
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