Home loans and the April 15 tax deadline

Your home purchase or refinance loan and the April 15 tax deadline.

If taxes were not fun enough, your home purchase or refinance loan can be affected by when and how you file your taxes.

For those who did not purchase a home or refinance your home last year, there was a change in the mortgage process that created some difficulties based on taxes. Almost every mortgage loan done today requires taxes to be provided as part of your loan documentation, but along with the paper itself, lenders now have to pull a tax transcript from the IRS to verify the paper you provided matches the record with the IRS.

While this is a great tool to prevent fraud, the IRS does have a lag time from when you file your taxes, to when that transcript is available. Why is this important? It is important because after April 15, you the borrower are required to provide the current year taxes or tax extension as part of your current home loan application and if the lender can not verify your taxes by pulling the transcript through the IRS, it can delay the ability to close your mortgage loan.

Although if you efile your taxes, there are ways to try and expedite this process, there will probably still be some kind of delay, but you may be able to avoid a larger delay.

Hopefully this information has been helpful in the planning of a home purchase or refinance.

Give us a call to discuss your mortgage needs – we are here to help!