You can use your tax refund for your down payment and closing. In order to do so you have to file your 2016 tax returns. Doing so while you’re trying to purchase a house tax filing time can cause some problems.

Lenders are required to provide proof that you have actually filed your tax returns by obtaining copies of your tax transcripts from the IRS. Normally this is not an issue but if you’re trying to close on a home at the end of April and you just found your tax returns on tax day, this may be an issue.

Lenders look at this differently. Some will not let you close on your new home loan until the IRS has verified your transcripts have been received. Sometimes this process can take up to four weeks for the IRS to verify.

At Service First Mortgage we are always looking for ways to increase the speed of your loan closing while providing exceptional service. With this in mind we have created a very flexible policy. 

Here’s the easiest thing to do. Take your tax returns along with a copy for yourself to your local IRS office. When you hand-deliver your tax return many IRS offices will stamp it as received. You can provide this as proof that you have filed your tax returns along with a copy of the check if you are paying.

Borrowers that have filed an extension:
We will need proof that the extension has been properly completed and filed. Extensions with dollar amounts being left blank are not acceptable if no amount owed it should show zero.
Any amounts being owed for 2016 must be documented as being paid to the IRS.
We will need a transcript request from 2016 showing “no return on file” in the file for underwriting.

Also keep in mind that amounts due on tax returns that have been recently filed will need to be documented as paid or as reserves. Please watch out for this and make sure there are sufficient funds in your accounts to cover the amount owed on top of required down payments, closing costs and/or reserves, or provide proof that the funds have cleared your account prior to the date of the bank balance.

If you are interested in purchasing a home and want to work with a seasoned home loan specialist call me now at 214-945-1066 or apply online at www.mortgageprosUS.com.

Richard Woodward, NMLS 217454
Your Local, Direct, 5 Star Rated Mortgage Lender
Office:  (214) 945-1066
 www.MortgageProsUs.com
Service First Mortgage  NMLS 166487
6800 Weiskopf Ave #200, McKinney, TX 75070
 
Licensed by the Texas Department of Savings and Mortgage Lending (SML) Mortgage Banker Registration. Service First Mortgage is an Equal Housing Lender. This is not an offer of credit or commitment to lend. Loans are subject to buyer and property qualification. Rates and fees are subject to change without notice.