In the process of applying for a home loan, the act of fictitious income or assets to mislead the lending institution is loan fraud and may involve serious legal consequences (such as criminal liability, damage to credit history, etc.). The following are some methods that may be used by criminals, but it should be emphasized that **These behaviors are illegal and undesirable.**： --- ###**1. Fictitious or exaggerated income** 1. **Falsifying payroll or bank turnover** - Make false payroll, bonus certificates, or tamper with bank turnover records to inflate monthly income. -Create the illusion of “stable income” through short-term large-scale transfers to cover up the lack of actual income. 2. **False employment relationship** - Collude with the employer to issue false certificates of employment and falsely report the position, salary or working years. -Impersonate self-employed persons (such as freelancers, individual industrial and commercial households) to falsify financial statements or tax records. 3. **Inflated non-wage income** -Falsely claimed to have rental income, investment income, etc., but lacked contract or transaction records to support it. -Use transfers from relatives and friends to pretend to be a ”stable source of income". --- ###**2. Fictitious or misrepresented assets** 1. **Falsification of asset certificates** -Tampering with bank deposit certificates, stock account balances, or real estate valuation reports. -Use P-chart software to modify bank statements or asset files. 2. **Temporarily Borrow funds to create false assets** -Borrow money from others in a short period of time and deposit it into an account before applying, and transfer it out immediately after the loan is approved (commonly known as ”bridge funds"). -Create the illusion of active account through revolving transfers. 3. **Concealment of liabilities or asset mortgages** - Do not disclose other loans (such as credit card debt, car loans) or mortgaged assets, exaggerating net assets. --- ###**3. Use third parties to conspire to defraud** 1. **False co-borrower** - Win over relatives and friends with good credit as co-borrowers, but they do not actually bear the responsibility for repayment. 2. **Forgery of guarantees or collateral** - Provide false real estate certificates, vehicle registration certificates, etc. as collateral. -Collude with evaluation agencies to overestimate the value of collateral. --- ###**4. Technical means and identity fraud** 1. **Misappropriation of other people's identity information** -Fraudulently use the identity of others, falsify social security numbers or tax records to apply for loans. 2. **Exploit loopholes in financial instruments** -Conceal the true financial situation through complex financial products (such as temporary high-interest deposits). --- ###**How do lending institutions prevent it? ** 1. **Strictly verify the authenticity of documents** -Cross-check payroll, tax bills, and bank turnover (records of more than 6 months are required). -Verify income and assets through third-party institutions (such as credit reporting systems and taxation bureaus). 2. **Assess income stability** -Require longer-term financial records (such as 2-year tax returns) for self-employed persons. 3. **Check the legality of funds** - Track the source of large deposits and exclude short-term loans or unknown transfers. 4. **On-site verification and interview** -On-site inspection of the status of the collateral, or directly confirm the employment information with the employer. --- ###**Important reminder** -**Legal risks**: Fictitious information may violate the crime of “loan fraud” in the Criminal Law and face fines, imprisonment and lifelong credit stains. -**Economic risks**: An exaggerated increase in the loan amount may lead to excessive repayment pressure, which will eventually lead to the suspension of supply and the auction of assets. -**Legal alternatives**: Loan qualifications can be improved by increasing the down payment ratio, choosing a longer loan term, or improving the real income/credit score. Be sure to apply for a loan in a legal and transparent manner to avoid losing a lot due to small mistakes.