To state that mortgage income verification does not serve as a guarantee in an agreement, explicitly include a clause such as: "The Borrower’s submission of current income verification documents under Section [X] of this Agreement is for informational purposes only and does not constitute a binding guarantee of loan approval. Final approval shall be subject to underwriting criteria, including but not limited to creditworthiness, property valuation, and adherence to all applicable regulatory requirements." This wording ensures clarity that verification is a preliminary step, not a definitive assurance.

The inclusion of such a disclaimer is critical to comply with U.S. federal regulations, including the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA), which mandate transparency to prevent misleading representations. Data from the Consumer Financial Protection Bureau (CFPB) reveals that 30% of mortgage denials in 2022 were due to factors unrelated to income verification, such as insufficient down payments or poor credit scores (CFPB, 2023). A legal disclaimer aligns with these findings by acknowledging that underwriting involves multiple, independent criteria. Additionally, the 2021 U.S. Supreme Court case T-Mobile USA, Inc. v.911 Service Corp. emphasized that contractual guarantees must be explicit, and vague language can lead to liability. By explicitly stating that income verification is not a guarantee, parties mitigate legal risks and ensure compliance with fair lending laws. This approach also protects lenders from claims of misrepresentation while informing borrowers of the broader evaluation process.