Thursday, June 6, 2013
When thinking of buying a home get your taxes done.
Looking back this year so far, there is a recurring issue I want you aware of, many times I get buyers who own their own business and one of the things they to in April is file for an extension. Not a great idea if you are considering buying a home within the year.
My clients have had problems qualifying for a home because of this very common practice. Looking at it from a lender, it makes complete sense, a person comes to you saying they made a certain amount the previous year, and to assume they made that amount last year and is asking you to qualify them to buy a home this year.
The way a lender can do this is ONLY if they can prove and document from the IRS that this is an average income for you and that your business will continue at the very least the same for years to come!
Filing once you find the home could easily delay you getting a loan for 2-3 months...most sellers in this market are not willing to wait to sell their home for an additional 2 or 3 months.
So, here is my advise to you; file your taxes before April 15th, yes that might mean paying taxes and planning ahead so you can do that and I know we all hate to pay taxes early but in the long run, that is so much better than losing the home you found, that you can see your family living in because you didn't think ahead.
Ok, now you have been warned... Hope it helps you get the house you want!!
As always, let me know if I can help you or someone you know buy or sell a home in Arizona.