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Getting Ready to Close on your new home? 2/1/2012 - Charlotte, NC

By
Real Estate Agent with Coldwell Banker NC# 264393 SC#81758

Deanna Valeo of New American Home Mortgage sent out an email that I thought all of us could use.  We are in Charlotte, NC but this should apply everyone!

 

If you are signing an offer with a closing on or after February 1, 2012 you should prepare your buyers for getting in the necessary extra paperwork.

 

Lenders will need 2011 W2s on any loan closing 2/1 or later. By law an employer HAS to issue a W2 NO LATER than January 31.

 

I would make the borrowers aware to provide them when they become available, just to make sure we don’t have to get them post closing, etc. or have a delay on the upcoming closing.

 

Complete tax returns must be filed on or before 4/15/12.

 

Any buyer who is self-employed, has a side business, rental income, or has unreimbursed employee expenses, etc—anything that creates additional schedules is required to submit two years of complete tax returns at application. Personal and corporate-if applicable.

 

If the buyer chooses to file an extension then a copy of the extension must be provided on or before 4/15. I would advise that the customer provide a P&L for business income for 2011. If the customer wants to have the lender take the 2011 business income into consideration then they should go ahead and file the returns. We cannot use the P&L as verification of income unless it is “Audited”. This costs as much as completing the returns so the customer may as well finish the return, besides CPAs do not like doing them.

 

Extensions will NOT be accepted after the September tax deadline.

 

Every lender is now requiring that a borrower complete a 4506T. This is a tax transcript request form submitted to the IRS. Typically we get a response and a copy of the transcript within 1 day. We will order copies of, upto, all W2s for all borrowers, 1099s, 1040s, business returns. Basically anything a borrower submits to the IRS we may want a copy of. The lenders always compare what was provided by the customer against what they submit to the IRS. The transcripts are also often ordered again post-closing.

This is great information to keep our clients closing smooth.

Posted by

Thank you,

Dee Langley

704-989-9793

dee@deelangley.com

    

 

Comments (1)

Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

I find most home owners or soon to be home owners would be better off getting their taxes done ASAP. Often they find they either will get money back or if they don't they need to be prepared to pay if need be. 

 

Jan 26, 2012 04:21 AM