April 15th is right around the corner for many borrowers, and our brokers are fielding questions along the lines of, “Do I need to file my taxes?” and “Why is my loan approval delayed because I filed my taxes?”
Our brokers usually explain that we need tax returns to verify income. For any year's tax returns a lender uses for income verification, they also need transcripts sent to us directly from the IRS to confirm the returns we have are the same ones the IRS has.
We are at that time of year when filing your tax returns, if you are getting a mortgage, can create a problem. For most people—those who are salaried and on W2s—it is not much of an issue.
But our brokers know that for those who are self-employed, have large commissions and bonuses, own rental property, receive significant investment income from dividends and other sources, or are partner in any businesses, this time of year may create an issue for final loan approval depending on when and how their client filed their income taxes for 2015.
For most tax years, we receive the transcript in a week or less from when we send in our request. That time frame is often extended by a week or more during this time of year when requesting the immediate past year's returns if the return was filed electronically.
There are factors to consider and possible work arounds depending on income stability, refunds already received, and so on. This is a time when JMAC’s experienced brokers can guide borrowers through the maze of underwriting requirements during tax time if their borrowers are considering a home loan and have non-traditional income. And JMAC’s Account Executives are standing by to answer questions on our guidelines.