Lending Information

Did you know that ALL banks take into consideration all un-reimbursements declared on income taxes?

This may adversely affect your clients ability to qualify for their home loan. This is for ALL borrowers, salary, hourly and self employed.

Example:

· A borrower who is Salaried and on their 2009 W2 made $64,000

· On his 2009 Tax returns he declared $45,000 in unreimbursed expenses (yes believe it or not we see this a lot)

· The guidelines state that the $45 will have to be deducted from his gross income of $64k worth of earnings, making the borrower’s income a total of $19,000 for 2009, and that the percentage of the write off will be deducted from their 2010 earnings!!!

· What this means, is that the borrower will not qualify with a 2010 salary of $64k but only $20k!!!

Make sure they are turning in their taxes when getting fully “pre-approved”. I have seen countless agents devastated, calling me at the last hour inquiring why their clients loan was declined by another bank after ratification of the contract. This goes back to the loan officer not reviewing all necessary documents before issuing the loan approval letter!!

Thomas Merical