Using 2012 Income Tax Returns to Qualify for a Home Loan

Using 2012 Income Taxes Returns to Qualify for a Home Loan

Due to what is defined as an Extremely Hot Seller’s Market and the urgent needs of home seekers, many clients want to know if they can use their yet-to-be filled 2012 tax returns to get a pre-approval letter for a home mortgage. 

The answer is usually no because many lenders require that the filing be verified by the IRS and the verification process takes from 6 to 8 weeks. Therefore, unless the home-seeker filed their tax returns around December 25, 2012 they are most likely excluded from using the reported income to get a pre-approval. This situation leaves many homebuyers in an 8 week waiting period where they are, in effect, off-the-market and unable to purchase a home.

There is one solution. Certain lenders allow for the following exception: if the tax return is filed in-person and certified as received by our local IRS office at 801 Civic Center Drive W. Santa Ana, CA 92701, then it can be used straightway.

Many thanks to C2 Financial Corporation’s, Shannon Burkhart who informed us about the above opportunity as well as her expertise in knowing which specific lenders allow for an exemption. Shannon can be reached at shannonburkhart@gmail.com or at 714-397-3443.

For individuals who have already filed their taxes, getting verification is as simple as filling out a 4506-T Request of Transcript for Tax Return http://www.irs.gov/pub/irs-pdf/f4506t.pdf and waiting for their reply.

Happy home hunting.