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I have applied for a mortgage to refinance with a national lender (me only, not my spouse). approved online, now just going through the motions. everything is fine... signed everything. sent last 2 years worth of W2's, bank statements, insurance, etc. Appraisal came back showing 35% equity (from their appraiser). Plenty of income to debt ratio. No hiccups.
Just got asked for a complete copy of my taxes from last year. What gives? Why do they want to see that?
Here's why I don't want to provide it. (Maybe it won't matter, since it is my spouse's self employment)... My spouse has a small business that had a bad year last year, and brought our AGI down on our 1040. The business is in no way related to me. I work full-time (same company 10+ years), and have W2's to support.
My questions...
1) why do they want to see my taxes, when the only income I claimed on application is verified through my W2's?
2) will my spouse's self employment kick my application into another realm, or even disqualify me from closing the loan?
3) are there any other options for me to close a loan (maybe a different lender) that would not want to see my taxes?
I have applied for a mortgage to refinance with a national lender (me only, not my spouse). approved online, now just going through the motions. everything is fine... signed everything. sent last 2 years worth of W2's, bank statements, insurance, etc. Appraisal came back showing 35% equity (from their appraiser). Plenty of income to debt ratio. No hiccups.
Just got asked for a complete copy of my taxes from last year. What gives? Why do they want to see that?
Here's why I don't want to provide it. (Maybe it won't matter, since it is my spouse's self employment)... My spouse has a small business that had a bad year last year, and brought our AGI down on our 1040. The business is in no way related to me. I work full-time (same company 10+ years), and have W2's to support.
My questions...
1) why do they want to see my taxes, when the only income I claimed on application is verified through my W2's?
2) will my spouse's self employment kick my application into another realm, or even disqualify me from closing the loan?
3) are there any other options for me to close a loan (maybe a different lender) that would not want to see my taxes?
Thanks for your reply.
Depending on the loan amount, that may be why they asked for the tax returns. Did you tell them your spouse had a business? They would be checking for any big losses. But if their name is not on the application, then you should not have to provide the returns.
Do you guys file jointly?
Here's why I don't want to provide it. (Maybe it won't matter, since it is my spouse's self employment)... My spouse has a small business that had a bad year last year, and brought our AGI down on our 1040. The business is in no way related to me. I work full-time (same company 10+ years), and have W2's to support.
This is EXACTLY why they want to see your tax returns.........
If you say that your husband business has no bearing on you, then your combined AGI should be just as high or higher than if you were single and you shouldn't have anything to worry about.
I'm willing to bet your husband's business is bringing your AGI down.... and if that's the case, how can you say that is in no way related to you? As a potential lender, I would not feel comfortable lending to you knowing that you are having to bail out your husband.
The 4506-T is executed on every loan file now. They got the results back and saw the S/E income/ loss and need to verify the figures. What they got back from the IRS didn't match the application. Just doing their due diligence.
As soon as your LO heard your husband was S/E they should have asked for tax returns because of this.
Fannie & Freddie don't require that you submit the 4506 on every loan, they just require that you make the borrowers sign it.
Of course the self-employed husband would require an executed 4506 if he were on the loan, but since he's not.. I don't think it was required, unless it was the originating bank's own requirement. (But once the cat is out of the bag, you can't stuff her back in, required or not)
OP: what are your ratios if you used the AGI figure from the return?
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