It's time! ⏰ TAX TIME! 👀
Part 1 of the Home Tax Series
April 15th is right around the corner and I wanted to share this important message with you:
📍 How You File Matters! 📢
Your tax returns serve as a primary source of documentation for your income and deductions.
Buyers…
When you apply for a mortgage, lenders dig into your debt-to-income ratio. This is a key factor in determining how much mortgage you can afford.
Here are the Top 3 Reasons why you should inform your accountant or tax professional to prepare your taxes with the intent to buy a home:
01. To Create an Accurate Financial Profile
Properly preparing your taxes the year before or early in the year that you are planning to buy a house ensures an accurate representation of your financial status. (Some mortgage programs, especially for those who are self-employed, often require 2 or more years of returns prepared correctly to qualify while others have more lenient qualification standards.)
02. To Maximize How Much You Qualify For
Thorough tax preparation allows you to take advantage of all eligible credits. Doing so can positively impact and potentially increase how much house you may qualify for.
03. Favorable Loan Terms
Lenders use your financial history to determine the interest rates and terms they offer, leading to better interest rates and conditions on your mortgage, ultimately saving you money over the life of the loan.
In essence, precise and timely tax preparation provides a clear financial picture, instilling confidence in lenders and increasing your chances of securing a mortgage with favorable terms for your home purchase.
Existing Homeowners...
Stay tuned for Part 2 of my Home Tax Series.
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Disclaimer: The information provided in this publication does not, and is not intended to, constitute legal or tax advice; instead, all information, content, and materials available on this site are for general informational purposes only. Please consult with your tax professional for more details.