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6 common but illegal money habits that can get you in big trouble

Lying on a home loan application
Lying on a home loan application | Rob Daly/OJO Images/Getty Images

Lying on a home loan application

Homebuyers and homeowners who want to refinance may be tempted to inflate their income or hide some debts to improve their chances that a lender will say "yes."

But lying on a loan application is fraud, and lenders do check up on applicants' information, Kaplan says.

"You should always be honest," she says. "We all go through difficult financial periods, and it's tempting to want to fudge. But if you get caught, it's going to lead to huge headaches, and you will sleep better at night knowing that you aren't living with a lie."

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