Tax: should I deduct or not, to qualify for a higher loan?

[Eric Bate]

I'm in the market for my first property.  Just got off the phone with a mortgage lender, and he suggested I don't go super aggressive with deductions this year (I'm self-employed as a musician, and most of my "jobs" are either cash or 1099 independent contractor).  The more I make on paper, the more of a loan I can get approved for.

I haven't sat down with my taxes yet, but I make roughly $20-30k/yr before deductions.  I have $50k sitting in the stock market that I plan on using as downpayment.  Is his advice sound?  Should I deduct nothing so that I can qualify for a higher loan?  Or should I deduct as much as possible?

Thanks guys!

Eric