1 / 5

What Do Your Tax Docs Tell Lenders?

Tax Returns can give Mortgage Lenders an idea of your income history; whether or not you have a steady & stable stream of incoming flowing-in and how much you make can determine how much home you can afford.

Get4
Download Presentation

What Do Your Tax Docs Tell Lenders?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Get Started November 2019 What Do Your Tax Docs Tell Lenders? Back to blog Thinking of Re몭nancing? Before a Mortgage Lender will issue you a Mortgage Loan, they need to get an idea of what you can afford. One of the most telling ways for a Lender to get a glimpse of your affordability is by going over the last year or two (depending on the employment or loan type) of Tax Returns as well as other requested Financial Documents (These may include bank statements, pay stubs and other various documents.); This is otherwise known as the “2 Year Threshold”.  Mortgage Lenders will be looking over your debt-to-income ratio (DTI). The equation is as follows: Monthly Debt Payments (Including Future Monthly Mortgage Payments, Taxes, Insurance, and Mortgage Insurance) ÷ Monthly Income (Before Taxes) = Your Debt-to- Income Ratio (DTI) The lower your Debt-to-Income, the greater chances you have at Re몭nancing.   Why do Lenders need my tax returns?  Tax Returns can give Mortgage Lenders an idea of your income history; whether or not you have a steady & stable stream of incoming 몭owing-in and how much you make can determine how much home you can afford. Also, showing

  2. your on-top of paying your taxes can give you a standing ovation inside the responsibility arena. What kind of Income Documents will a Mortgage Lender request? In general, borrowers are usually asked for the following: 1-2 years of personal tax returns 1-2 years of business tax returns (if you own a business)  1-2 years of W-2s or 1099s The requested paperwork can also vary depending on your work situation. For example, If you’re a freelancer, Mortgage Lenders will typically ask you for a copy of your P&L (Pro몭ts & Losses). Statement E is needed if you have any real estate investments.  To get a better idea of how much home you can afford, check out our Mortgage Affordability Calculator click here. For a detailed breakdown of interest rates and monthly payments, click here to get started. If you would prefer to speak with one of our Home Loan Experts, please feel free to contact us at 888-562-2611 or info@getarate.com Financial Tips Share post: Was this article helpful? Yes No 1 out of 1 found this helpful Related posts

  3. November 2019 November 2019 Wave Goodbye to Your Mortgage Insurance What the Heck is Re몭nancing?? Ah... that pesky Mortgage Insurance- Isn’t there a way to get rid of that extra monthly payment? Good news!... Are you happy with your current Mortgage? Or do you need cash now? If you have speci몭c 몭scal goals you'd li... Buying a Home Financial Tips Financial Tips Re몭nancing Re몭nancing December 2016 October 2019 Tim Waller’s The NJ Real Estate Show Interviews Get A Rate’s Nick Marenoski Top 4 ReFi Questions Curious about Re몭nancing? It can be a very smart and strategic move in the game of homeownership. However, i... The NJ Real Estate Show, a weekly radio show hosted by real estate veteran Tim Waller, sat down with Get... Financial Tips Buying a Home Financial Tips Tools Purchase Calculator

  4. Re몭nance Calculator Affordability Calculator Rent vs Buy Calculator Credits / Points Calculator Programs Comparison 30 Years Fixed 15 Years Fixed FHA Loan VA Loan About Us Company Information Press Room Careers Testimonials Contact Learn Blog FAQs Of몭ces NJ Of몭ce FL Of몭ce GA Of몭ce CA Of몭ce © 2021. Get A Rate LLC. All Rights Reserved NMLS #907795 Licensed Residential Mortgage Lender in CA, WA, GA, TX, PA, CT, FL, SC, IL and NJ (by the NJ Department of Banking and Insurance). Equal Housing Opportunity Lender. When and if acting as a broker, Get A Rate will not make commitments or fund mortgage loans. Registered NY Mortgage Broker. All NY mortgage loans are arranged with third party lenders – Get A Rate LLC does not directly offer or guarantee NY interest rates or loan programs and does not directly issue commitments or make 몭nal decisions on loan terms. This website is not authorized by the NYDFS and that no applications can be taken for NY loans on the site. Get A Rate LLC is an FHA Approved Direct Lending Institution, and is not acting on behalf of or at the direction of HUD/FHA or the Federal government. These programs are not a commitment to lend and program guidelines are subject to

  5. programs are not a commitment to lend and program guidelines are subject to change. Additional Disclosures Home / HUD & RESPA / State Licenses & Disclosures, Terms & Conditions, Privacy Policy / 888-562-2611 / Rate Lock Policy / NMLS Consumer Access

More Related