Is This Illegal Or Unethical
I am in the process of closing (1/31) on a duplex as my first property. It will basically be my primary residence. Is it illegal for me to get financing for another property before this loan closes or shows up on my credit report. Basically allowing me to purchase another property also as a primary residence and not having the mortgage payment from the first property considered when apply for the loan on the second?
Yes it is illegal. Its called loan fraud.
When you go to the settlement table, the bank will have you sign a form about whether your financial status has changed. They really cover all bases.
The bank will require that you resign the original loan application form in which you affirm your assets and debts. If you did not disclose your new debts, that would be fraud.