Buying a home? You may want to delay filing your taxes right now.

If you are in the market to buy or refinance your home around tax time, you might want consider filing an extension. This is because some lenders require taxes to be verified if a tax return has been filed. The IRS typically winds up taking several weeks to process verifications from lenders during this time of the year. This can potentially cause a delay with closing of some transactions.

In order to avoid this delay, borrowers might consider filing an extension, and then file their taxes after the purchase or refinance has closed.

If a borrower is self employed, and the current income for the most recent year is needed for qualifying, then the taxes would need to be filed as lenders rely on tax returns to determine self-employment and other types of income (like rental).

Bottom line – if you are considering getting a mortgage right now, check with your Loan Officer BEFORE you file your taxes.

If I can help you with your mortgages needs for homes located anywhere in Washington state, please contact me!

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