Unless you live in a cave on a remote island somewhere you have heard that it is more difficult to get approved for a home loan than it used to be. Things are no different here in Logan, Utah. Your pay stubs, W2's, and tax returns are going to be looked at very closely to make sure that they match the gross monthly income that you put on the loan application.
For self-employed borrowers (if you own 25% or more of a business) you will have to provide your last 2 years of tax returns (also for all FHA loans) because your history of income is looked at more closely than if you were an employee getting paid a salary.
If you made more income in 2009 than in 2008 and the loan approval depends on that increase it is imperative that you file your tax returns quickly and also that you file it through the closest IRS office. The closest office to Logan, Utah is in Ogden at 324 25th St (See directions below). By filing directly at the office, your transcripts will be available within a few days rather than the weeks or months that it can take if you e-file or send in your tax returns through the mail.
The underwriter orders transcripts directly from the IRS to verify the #'s on your tax return. If your transcripts aren't available than the underwriter can't verify your income and this will delay your loan approval.
Why does the underwriter need to order tax transcripts (Form 4506T) directly from the IRS you say? For this we can thank those few dishonest ones that would send in a different tax return to the IRS than the one they gave to their loan officer.
If you are a first time homebuyer and you need to use your 2009 income, this little detail could be the difference between getting your $8,000 tax credit or not getting it.
Directions for IRS office at 324 25th St. in Ogden, Utah.
About the Author
John Neil is a loan officer that is passionate about his profession. His goal with every transaction is to make a customer for life. The result is that 95% of his business comes from referrals of satisfied clients. If you need a cache valley mortgage, you can contact John at 435-770-2709. You can also follow him on twitter @LoganUTMortgage or facebook @facebook/MortgageNerd
