For more information, please contact me at (512) 261-1542 or steve@LoneStarLending.com.
By G. Steven Bray
If you’re planning to apply for a mortgage, your lender likely will ask you to sign an IRS form that allows it to order a transcript of your tax returns. This is despite the fact that you also provided copies of your returns. We love redundancy.
As we approach the tax filing deadline, you need to keep in mind that when you file your return, the IRS doesn’t make it available immediately. If you file electronically, your return generally will be available 2 to 3 weeks after filing. If you file on paper, you can expect to wait 6 to 8 weeks if you’re due a refund. You’ll wait until mid-to-late June if you have a balance due.
These times are important because once we pass Apr 15th, your lender will expect you to provide either a copy of your 2014 return or a copy of the request for extension. If you provide your return, you may not be able to close your mortgage until the lender receives the tax transcript from the IRS. Thus, if you file on the 15th, closing on the 30th is risky.
If you plan to close in the next couple months, the safest bet may be to file for the automatic extension even if you already have completed your taxes. That way you won’t have to worry about any backlogs at the IRS.