What is on the schedule A of your tax return that impacts the mortgage approval?
On schedule A is the itemized deductions and un-reimbursed employee expenses. This is a concept that I never had to deal with in the past, but last month alone 4 clients of mine were negatively impacted by the non re-imbursed expenses. What this means is that if the client is a w-2 earner, we still have to deduct these "un-reimbursed expenses. This impacts your approval. I now actually asked to see a tax return prior to issuing a pre-approval letter. The worst thing would be for me to pre-approve a client and then a realtor will spend time showing them homes and negotiating a purchase of the home of their dreams and then to find out well into the process, that they don't qualify!!
On schedule A is the itemized deductions and un-reimbursed employee expenses. This is a concept that I never had to deal with in the past, but last month alone 4 clients of mine were negatively impacted by the non re-imbursed expenses. What this means is that if the client is a w-2 earner, we still have to deduct these "un-reimbursed expenses. This impacts your approval. I now actually asked to see a tax return prior to issuing a pre-approval letter. The worst thing would be for me to pre-approve a client and then a realtor will spend time showing them homes and negotiating a purchase of the home of their dreams and then to find out well into the process, that they don't qualify!!
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