Sophisticated Tax Returns
Why Your Tax Returns Are Considered to be a Big Part of the Mortgage Process
There are many intricate aspects in getting a mortgage here in South Florida. Do you have your own business? You will need a 1099 form from the last two years. Do you collect a paycheck from a boss? You will need a pay stub from the same time frame. You will need any sort of canceled checks you may have around. You will need other things such as your bank statements and your profit and loss statements.
The most important thing you will need is your tax return.
You cannot get a better quote on your adjustable rate mortgage Boynton Beach unless you have the tax returns. Many clients ask why the tax return is so important during the process. Listed below you will find a few important reasons why they are important.
1) A client’s full picture is not disclosed by the first two pages. Lenders need the full tax document to go over everything. The first two pages will offer some insight, but not everything that is necessary.
2) Somewhere within the documents is a form known as the Form 4506-T. This is valuable. This way your lender can get a full transcript from the IRS. This transcript is needed to go over everything. Some questions are not answered by the tax return alone. This is why this form is part of it.
This form is helpful to those looking to obtain one of the lower fees attached to the adjustable rate mortgage Boynton Beach has to offer.
3) Another benefit this serves is with the loan fraud. Your lender or bank wants to see if there are any irregularities. The bank wants to see if you have committed loan fraud before. This information is not so readily available within a W-2 or 1099 form.
4) Banks and lenders want to know about all the income. Some clients fail to report certain types of income. Things like business expenses and rental property income sometimes fail to get mentioned. Some do this intentionally. Others do this unintentionally. Banks and lenders need to know this.
How can I get the returns faster?
The IRS is known to move slower on those who owe money, compared to someone who is getting a refund. It depends on the persona and situation. Are you someone who owes money, yet are trying to get a mortgage application process completed?
1) Give them a call. Find out if they can escalate the process much faster for you.
2) Visit the office personally. Sometimes this speeds them up. Some do not take a phone call seriously enough.
3) Pay off any debt you may have. This another way to speed things up. It will also prove to be effective with your tax returns.
4) Your tax returns may be showing you are refinancing something else right now. Take care of this situation. This will lower your debt load.
Three tax return income preparation tips
1) Sometimes you may not need the returns at all. In some cases, your W-2 forms will be enough. Ask your lender or bank which forms they do need. Ask them about the tax returns. They do help but sometimes are not necessary.
2) Say you are off to a slow start. File an extension. You will have to October of the same year to get it done. Talk to your bank or lender about what you are doing. Provide them a copy of the extension. This will serve until you are able to get your tax returns in.
3) Say you are self-employed. Say you have only the tax returns for about 6 months. This will be good enough for most lenders and bankers. All they require is enough to tell the story.
The mortgage process can be terrifying as it is. The more you have your paperwork in line, the better off you will be.
Go online and check out our site. We are here to serve any and all clients here in the South Florida area. Visit us at http://choicemortgagebankinc.com/.