sgip
Well-known member
Every lenders policies are different, but by taking a few of these steps now you'll make your Q1 closings flow smoothly:
1) Keep on hand the last pay stub that was paid to you in 2017. Some checks might say 12-15/12-31, but are paid 1/2/18. Lenders will want the last 2017 paid check, and the most recent 2018 paid check to get a solid annual income picture.
2) Download your 2017 W-2. Don't wait for the USPS to misdeliver it.
3) If you're self-employed, get that January 1, 2017 to December 31st, 2017 Profit and Loss, plus Balance Sheet done.
4) Some lenders (such as the one I work for) will accept a filing of your 2017 returns as long as you have a receipt of acceptance by the IRS - a document that is generated by most tax programs. If 2015 was meh and 2016-2017 had blockbuster income, get that 2017 filed by Feb 1st and grab that IRS acknowledged receipt ASAP. Now instead of an Underwriter averaging 2015 and 2016, some lenders will average 2016-2017 making the qualifying picture brighter.
If you are Self Employed and need your 2017 income to make things work, know that any lender relying on an IRS Form 4506-T to confirm your SE income will have to wait until the IRS processes these 4506-T's. Wanna know when the IRS gets around to them? Late May, but expect June of 2018.
5) When preparing your taxes for 2017, go easy on the 2106 expenses. If you had zero in 2016 and now have a bunch on your 2017 1040's, you may have a very difficult self inflicted wound to recover from - if at all. Save those deductions post closing should you file an amended return...
Thanks for reading,
Soylent Green Is People.
PS - Did you buy a home in 2017? If so, is your W-2 going to your old address by chance? Might want to see what address your HR has on file. These things aren't always taken care of and it never hurts to re-check.
1) Keep on hand the last pay stub that was paid to you in 2017. Some checks might say 12-15/12-31, but are paid 1/2/18. Lenders will want the last 2017 paid check, and the most recent 2018 paid check to get a solid annual income picture.
2) Download your 2017 W-2. Don't wait for the USPS to misdeliver it.
3) If you're self-employed, get that January 1, 2017 to December 31st, 2017 Profit and Loss, plus Balance Sheet done.
4) Some lenders (such as the one I work for) will accept a filing of your 2017 returns as long as you have a receipt of acceptance by the IRS - a document that is generated by most tax programs. If 2015 was meh and 2016-2017 had blockbuster income, get that 2017 filed by Feb 1st and grab that IRS acknowledged receipt ASAP. Now instead of an Underwriter averaging 2015 and 2016, some lenders will average 2016-2017 making the qualifying picture brighter.
If you are Self Employed and need your 2017 income to make things work, know that any lender relying on an IRS Form 4506-T to confirm your SE income will have to wait until the IRS processes these 4506-T's. Wanna know when the IRS gets around to them? Late May, but expect June of 2018.
5) When preparing your taxes for 2017, go easy on the 2106 expenses. If you had zero in 2016 and now have a bunch on your 2017 1040's, you may have a very difficult self inflicted wound to recover from - if at all. Save those deductions post closing should you file an amended return...
Thanks for reading,
Soylent Green Is People.
PS - Did you buy a home in 2017? If so, is your W-2 going to your old address by chance? Might want to see what address your HR has on file. These things aren't always taken care of and it never hurts to re-check.