Allison Carroll – Academy Mortgage Corporation
Most people dread doing their taxes and applying for a home loan to about the same degree. Let’s face it, between the IRS and current lending regulations imposed largely by the Federal Government, it can be a complicated process. As you get ready to do your taxes this year, it’s important to let your accountant know if you think there’s even the slightest possibility you might get a home loan to purchase or refinance a home. This is a great time of year to let your loan officer and accountant collaborate to make sure both are helping you move towards your personal and financial goals.
Here’s a partial list of common aspects of your taxes that you and your accountant might not think twice about, but your loan officer sure will: unreimbursed employee expenses; losses or low earnings on rental income, farm income, partnerships, corporations or self-employed income; writing off interest and property taxes on a home you do not own.
None of us wants to pay taxes, and our accountants know that. The problem right now is that the government is involved in almost every loan we originate. Fannie Mae, Freddie Mac, VA, USDA, and FHA loans are all government-sponsored entities to some degree. I always tell my clients that if you don’t pay taxes on the income, the government doesn’t want to let you use it to qualify for a loan and substantiate your ability to repay a mortgage. Paper loss or not, it’s that cut and dry.
It’s important to use local accountants and lenders, so they can work together to help you. If you call a loan officer and, in order to issue a pre-approval, they simply ask you what you make instead of asking for documentation so they can calculate your income, hang up the phone. You’ve reached a drive-thru attendant, not a loan officer! A good, local lender will be thorough to make sure you have realistic expectations about the loan process and the amount of your pre-approval. Your local loan officer will be invested in your personal success, helping you reach your goals, and sustainable lending. We’re members of the community and we love helping our neighbors, and so does your accountant. After all, we’ll be seeing you and your kids next week at the grocery store.