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Sorry, I hadn't read this post before replying to your DM. It's really going to come down to where your mortgage interest deduction is taken. If it's all on Schedule E, I have to echo your lender's concerns. If most of the interest is on Schedule A, then you still have a shot. Did you state on schedule E how many weeks you did occupy? If your accountant put all mortgage interest on E, he didn't do you any favors.
If you could pay off the loan, do it. Its better to pay it off and pay no interest to a bank. Paying $3 in interest to a bank to save $1 in payments to the IRS makes no sense. Pay it off!
That was the plan all along and the only reason I went with an adjustable...
It's just with rates at 3%... seems like a good opportunity... especially if rates go up.
Rate Lock expired today... received an automated e-mail from lender.
In the last 10 days I have provided a letter of explanation from my CPA and from the my Employer and from the Payroll processor as requested.
Also, furnished all other documents requested and have left repeated calls to the mortgage consultant and used the automated feature at the Lender's website requesting a callback/assistance, as well as sending e-mails for confirmation all docs have been recieved.
Aside from several automated e-mails counting down my rate lock expiration... Nothing... maybe it is for the best.
Not sure I want to continue doing business with a company that can't even respond by voice, e-mail or help desk...
I do know I wasted a lot of time and they are holding my appraisal fee for an appraisal that was never done...
Thanks to everyone that responded
It's ironic because nothing on my end has changed since they funded my loan 7 years ago... except my balance is lower and my time on the job has increased...
They make is sound so simple... everything is done by e-mail and expedited for existing customers in good standing... well, never again for me. Face to face or forget it.
Yes, all of your mortgage interest on Schedule E is the problem. Primary residence interest should show on Schedule A. If you rented a room, say 1/5 of the house, 1/5 of the interest could go on Schedule E and the rest on A. That home, by IRS and mortgage definitions no longer meets the definition of a primary residence.
Too bad someone on the other end couldn't have said this 4 weeks ago when I asked about renting out my home and provided two years of tax returns It would have saved us both a lot of wasted effort... instead, they now wanted 4 years of tax returns plus a laundry list of additional items which were all provided.
My renter actually rents by square footage about 80% of the house and I live in the downstairs in-law which I was told was not a problem... just the income couldn't be counted as income.
My CPA didn't think it was a problem and his reply is mortgage people can't read tax returns...
My CPA didn't think it was a problem and his reply is mortgage people can't read tax returns...
Its not that underwriters can't read tax returns. For filing purposes it is best to have an expnse or income in box A that is where the CPA will put it. Guidelines say if there is a figure in box A the deal is dead. Nothing an underwriter can do.
My CPA didn't think it was a problem and his reply is mortgage people can't read tax returns...
Its not that underwriters can't read tax returns. For filing purposes it is best to have an expense or income in box A that is where the CPA will put it. Guidelines say if there is a figure in box A the deal is dead. Nothing an underwriter can do.
You need to ask your accountant what it's going to take to get the majority of the interest (a healthy chunk, not 51%) over to Schedule A and have him outline what that does to your returns.
He can make all the cracks he wants about mortgage lenders not being able to read tax returns, but the schedules are pretty clear about what goes where. It's all pretty clear on this form:
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It would have saved us both a lot of wasted effort... instead, they now wanted 4 years of tax returns plus a laundry list of additional items which were all provided.
