Special article brought to you by Econ Mortgage
When applying for a mortgage one of the biggest considerations is verifiable income. If you are a W2’d employee, the underwriter will likely only need your paystubs and W-2’s to calculate income. However, if you are self-employed, run a home-based business, have rental properties, or own your own incorporated business, then the underwriter will also need to see 2 years of personal or business tax returns (as applicable) to calculate income.
TAX RETURN PREPARATION
When preparing tax returns yourself, or having tax returns prepared for you, one item to keep in mind are your tax deductions. In most cases, tax write-offs will lower the amount of taxable income shown on the tax return. You may need to be cautious of how much is being written off if you are planning on refinancing or purchasing a home in the upcoming tax year. The underwriter will consider these deductions and write-offs when determining how much income you are able to use for the mortgage application.
HOW TO PREPARE?
If you have questions on how your potential write-offs will affect your mortgage prospects, the best thing you can do to prepare is to be organized and by providing this documentation to your loan officer as soon as possible, sometimes even before filing. Your loan officer will be able to see the whole picture and appropriately advise you on anything which may need to be resolved to receive a final loan approval.
Who is Econ Mortgage?
At Econ Mortgage we keep our overhead low and use technology to streamline the mortgage process. We make less profit on each loan, so we can pass the savings on to our clients.
If you need a home loan or even just want to see if you qualify, call us at (385) 258-3588 or visit EconMortgage.com.