If a lender tells you that you’re elegible for a loan even though your monthly income is not enough to sustain the payments, it may be aiming to steal your home equity.

If this is the case, the lender might encourage you to “pad” your stated income on the application to increase your chance of approval.

If you sign on the dotted line and fail to meet monthly payments, the lender will usually not hesitate to foreclose on your home, stripping you of the equity you’ve built over the years. In most cases, you will lose your home.