Shoul you tell the bank if it is a rental or not

[nav1940]

Hi
Just wanted to know if most investor tell the bank the property that they are buy is for rental or personal use. If you do tell the bank that the property is for personal use and not a rental what can happen. is the mortgage rate any differnt from rental to personal use . this is the first rental we are buying.

thank you for your time

 

[Thomas Beyer]

QUOTE (nav1940 @ Apr 17 2009, 07:54 PM)
Hi

Just wanted to know if most investor tell the bank the property that they are buy is for rental or personal use. If you do tell the bank that the property is for personal use and not a rental what can happen. is the mortgage rate any differnt from rental to personal use . this is the first rental we are buying.



thank you for your time


why not go to Safeway and take some apples .. in most cases they won't notice either !! Some people walk through life lieing, cheating or stealing and won't get caught. Some do.



Chose your approach to life carefully.



Personally, I'd like to enjoy the proceeds of real estate investing (and they can be very substantial !!) outside of jail !



related post with similar opinions here:



http://myreinspace.com/public_forums/General_Discussion/61-10557-ASKING_ABOUT_ETHICAL_ISSUES.html

 

[RobMacdonald]

In most cases, the rates are similar just the qualifyng criteria is different. If you work with a broker that understands investment properties you shouldn`t have any issues.

If you don`t disclose that a rental property is a rental property, it`s fraud.

 

[ChrisDavies]

QUOTE (nav1940 @ Apr 17 2009, 06:54 PM) Hi
Just wanted to know if most investor tell the bank the property that they are buy is for rental or personal use. If you do tell the bank that the property is for personal use and not a rental what can happen. is the mortgage rate any differnt from rental to personal use . this is the first rental we are buying.

thank you for your time

To clarify what Rob means by fraud, and to answer your question `what can happen`. The bank can pull your loan, screw your credit rating and prosecute you. In certain cases you can end up in jail. It`s not even a grey area. It`s very, very black and full of land mines.