Q&A

I am more than happy to offer free advice to all readers. Please post your questions on this page and I will assist you with my years of knowledge in Underwriting as much as I can.


1,269 thoughts on “Q&A

  1. Anmber on

    My lender is requesting a 4506t for my 2015/16 tax returns. I’m a nervous wreck! Prior to getting preapproved for the loan I called the IRS to set up an installment agreement for both years. The IRS informed me that my 2015 return was never received. I filed through turbo tax, and somehow it didn’t process. I immediately faxed them the return while on the phone with them, but they told me it could take 8-12 weeks to process and update my transcript. I informed my loan officer and he suggested getting the return stamped at my local tax office. I tried, but the IRS agent said that they don’t do that. This is my only holdup. My loan officer says that I have a very strong file, but because I’m salary+commission they have to see my last 2 years. I’m so worried that it won’t update before I go to underwriting and they will deny my loan as a result of an honest mistake. The IRS is aware of my situation and I’m doing everything in my power to make it right. Will an underwriter accept a letter of explanation on this issue? Is there alternative documentation I can provide? W2 transcript perhaps? We are first time homebuyers. Any recommendations for a solution would be greatly appreciated! Thank you!

    • Underwriter on

      It really depends on the lender. If you can provide proof to support that 2015 is filed recently and able to proof payment owed is now paid (or refunded), you might have a shot at this. Will you be able to qualify without the commission income? That would be your second option. Many lenders are more relax on the 4506 requirement now. If you cannot receive the stamp copies for 2015 tax transcripts, try to get proof to support that they received your tax return.

  2. Mauricio on

    Hello I am about to close on a home in less then 2 week I owe back taxes I currently have money finally saved up so I can pay them off will this effect my closing??

    • Underwriter on

      No. You should be fine

  3. Amber on

    Could someone please help me figure out a letter of explanation for owed taxes. Long story short my husband changed his w2 back in 2013, to break even as we had already paid in more than enough to not owe. Well he didnt change it back to having taxes taken out of his check until this year. We have already filed 2014, 2015 and 2016 and under an installment agreement to pay the last 3 years. We have already made our first payment which we were told that the payment along with the agreement paperwork would suffice the underwriters. Now they are saying that they are not use to seeing people owe more than one year and our lender is saying we need to paint a prettier picture. My question is what are they wanting exactly? We are scheduled to close in less than 30 days.

    • Underwriter on

      Hi Amber. The lender wants an explanation on why you two are unable to pay taxes for 3 years in a row. If you were to lend a friend money and they have not been able to pay their bills in its entirely, I am sure you would want to know what causes them to be in the situation they are in and how it will not happen again. Asking you to “paint a prettier picture” is dishonest on that person’s part. You should never lie about the situation you were in.

  4. bryan sky on

    Bryan

    Hello , I started a new business in 2013 . 2014 and 2015 i didn’t file taxes . 7/29/2016 i filed 2014 and 2015 and with into a payment agreement . 3/28/2017 i filled my 2016 taxes and have combined 2014, 2015 and 2016 together into a payment agreement . now the underwriter is and for a LOE of why i didn’t file my 2014 . Any advice is appeciated .

    • Underwriter on

      Bryan. I thought you already filed for 2014 on 7/29/2016. Is that correct?

  5. Naz on

    We are buying a new house, me as a first time buyer and my husbands second property we will be renting out his first property. We have a 25% deposit and credit scores and in their 900’s however I have had a few late payments in the last 2/3 years will this be a deal breaker?

    • Underwriter on

      What is the question?

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