An important message from our friends at Cherry Creek Mortgage…
Tax time is just around the corner! As you prepare to file your 2012 federal income tax return, I wanted share a few of the hot items to keep in mind; specifically when it comes to obtaining a home loan.
Until April of this year when the deadline approaches for taxes to be filed, lenders will use either 2010 and 2011 tax returns or 2011 tax returns (depending on loan type) to calculate income for your home loan. If you are currently pre-qualified, but have not yet found a home, it’s important to be aware of the items which may affect your pre-qualification once taxes are filed.
Below are a few items that can affect your home loan pre-qualification:
Keep in mind, timing is important! Once you file your 2012 tax return, it can take the IRS 4-8 weeks to process the filing. If your home loan pre-qualification depends on the income reported on your 2012 tax return, lenders will require the return to be processed and verified by the IRS before the income can be used for qualifying.
I realize this topic is complex, however it is so important this time of the year. Educating our clients on how tax returns can impact their home loan pre-qualification is a key ingredient to understanding the home finance process. This way we can possibly avoid the tragic “well, you were qualified but now you’re not because of your tax filing” discussion. Knowledge is good – share it! ~Kelly