2 housing questions (insurance, loan officer, real estate, property tax)

[ogplife]

Are the taxes on a home considered when a bank is making their decision on a loan? What percentage of taxes paid on homes do most people get back around tax time?

[TimtheGuy]

Real estate taxes are considered in your debt to income ratio for the loan decision.
You can deduct your RE taxes if you itemize, but you don't "get any back".

[ogplife]

Originally Posted by TimtheGuy

Real estate taxes are considered in your debt to income ratio for the loan decision.
You can deduct your RE taxes if you itemize, but you don't "get any back".

What would be the purpose of itemizing them then?

[FLPL75]

Originally Posted by ogplife

What would be the purpose of itemizing them then?

It is like other deductions, like mortgage interest, it lowers your taxable amount.

Between our taxes and mortgage interest and the other deductions(like volunteer mileage) we get a larger refund.

[TimtheGuy]

Originally Posted by ogplife

What would be the purpose of itemizing them then?

It will reduce your total taxes payable for the year. Doesn't necessarily mean you will get a refund though.

[FLPL75]

Thanks tim
we always get a refund so I didn't think to ad that
But for those that have to pay if could also reduce that amount.

[ogplife]

Originally Posted by TimtheGuy

Real estate taxes are considered in your debt to income ratio for the loan decision.
You can deduct your RE taxes if you itemize, but you don't "get any back".

How can real estate taxes be considered when you are getting pre approved for a certain price home if there is no home to measure the taxes?

[renriq02]

Whenever you go see a home....you should ask what the annual property taxes are. You will need to give this your loan officer.
If you stay within your price range...and area...then the taxes should be the same. This of course doesnt apply to states that have tax exemptions.

If you have tax exemptions ....then it should be the same for every home you see at a certain price range and area. Different areas may have different city taxes or county taxes.

Originally Posted by ogplife

How can real estate taxes be considered when you are getting pre approved for a certain price home if there is no home to measure the taxes?

[TimtheGuy]

Originally Posted by ogplife

How can real estate taxes be considered when you are getting pre approved for a certain price home if there is no home to measure the taxes?

Loan Officers know about what the taxes will be in a given price range in a given city/county, so for a pre-approval we will use an estimate and err on the high side.

[TimtheGuy]

Same with homeonwer's insurance and/or HOA dues.