Tax Tips if you're buying a new home
- Talk to your Tax Advisers
My opinions and views are just that opinions.
I am not a tax expert. Your financial situation is best discussed with experts.
- A recent article in Realtor.com suggests a different tack
"The higher your reported income, the bigger the home loan you may qualify for. So if you're planning to buy a house in the next year or two, you may want to be less aggressive about claiming writ-offs." Whip your taxes into shape
- Loan Originators Agree
Brian Decker with Guarantee Rate explains it this way, “Is paying an extra few thousand dollars in state and federal taxes for the year worth it to become a homeowner?”
- Self Employed?
If you freelance pay attention to those large deductions - save documentation and be sure to tell your loan officer the circumstances that reduced you income. Some of their concern can be offset by making a large down-payment.
A solid track record in your profession, that demonstrates your earnings is usually required. Two years minimum according to Mike Lyon, executive vice president of operation at Quicken Loans.
- Have a W-2?
It is easier to get a mortgage is you have a W-2 than if you are self employed but lenders still want to see a sold two year work history. If you change jobs but it is in the same field and your wages are similar of more then loan officers are more comfortable accoding to .
Some things to keep in mind:
Write off on your Form 2016 which will be deducted from you earnings.
Long periods of unemployment, if you have any be prepared to explain.
- If you have Rental Income
If you report Rental Income lenders will want to see your Schedule E not a lease and write off will be deducted from that income but not depreciation.
- Good News for Home Buyers
Tax Deductions and Credits for Home Onwers you should be aware of :
Mortgage interest Paid
Residency Energy Credit
Always check with the IRS and you Tax Preparer
for update rules and regulations. With the right planning you may qualify to buy that new home sooner than you think.