Wednesday, January 25, 2012

Getting your taxes right, so you "do qualify" for that refinance or purchase

Last year I wrote an article about how the affluent in LA were stuck between the IRS and the Bank.

Here they sit with their income crossing over that 6 figure mark with ease, their home has a bunch of equity and more than half the loan they are seeking is in a retirement account or sitting in reserves, oh and their credit score, its well over 700.

Yet they do not qualify for a home loan... and why? Because of their taxes and what they show as taxable income. That's it, taxable income.

So this year as you sit with your CPA or Turbo-tax software, ask yourself this question: Do I currently qualify for a home loan with the income I showed in 2009 and 2010?

After writing the article last year I began to realize how many people actually don't have a good mortgage planner as part of their professional team.

their CPA will make sure they pay the least amount of taxes and save them as much as possible, however they will not take into consideration the economic impact that can come from not being able to take advantage of historic low rates and save thousands of dollars per year in payments.

My advise is meet with a Mortgage planner and have them review your income to confirm if you qualify or not, and if not, determine what you will need to claim on your taxes to qualify for that loan you want.

What does qualify mean? 45% of your "gross" income can go towards this only.
• Home loans
• Credit cards
• Property tax
• Home insurance
• Student loans
• Car loans


If you are over this, by a few percent you "may" qualify yet not for the best rates.

If you find this info helpful, or not, and want to hear more on this topic please let me know by commenting on this blog, as well as, sharing it with friends, family, and co-workers

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