Harp extended through 2015 – WOO HOO!!
Solar is pretty amazing and with all the programs that are out now, it is cheaper than ever. Here is a true story that i just heard from a solar customer. They used to average 500-700 a month on their electric bill. They got solar installed for ZERO MONEY OUT OF POCKET, they now get a bill for $16 a month and most likely get paid during the summer months. They have a fixed solar lease of $250 a month that is guaranteed over the next 25 years. This saves them over $3000 a year. What could you save with solar? Let me get you a free no cost evaluation by one of our solar energy specialist. Call me or message me today!
This information is not an advertisement to extend consumer credit as defined by Section 226.2 of Regulation Z. This is not an offer to enter into an agreement regarding interest rates. The rates quoted do not include discount points, origination points, or loan level risk based price adjustments. Rates presented in this report are averages and are subject to change without notice.
If you have recently applied for a home loan, you may be familiar with IRS 4506t that is required to be signed through the process. Many people sign is but don’t always understand what it is. Here is a breakdown of the form and why it is important.
The 4506t is a form used by lenders to request a copy of your IRS tax transcripts directly from the IRS. This allows the lenders to verify the income and potential liabilities that can show up on taxes.
“…But I provided my taxes with all of other documentation”
The taxes you provided are helpful to the lenders when qualifying your home loan application but are not considered verified information. In the electronic world we live in people technically have the ability to print out one set up taxes that show an inflated income while actually filing and paying taxes on a lower set of income. If a lender didn’t verify what the IRS has on record it would be easy to fall back into the cycle of lending on more that a person can truly afford. Banks have been down that road and are taking every precaution not to go there again.
“What year of taxes are verified?”
This is up the underwriter, investor, and the program you are applying for. Normally 2 years are reviewed but more or less can be review on a case by case basis. Expect the most recent 2 years to be reviewed because that is the most common.
“… I just filed my taxes and I want to use my most recent tax year to qualify, Can I”
Yes! The current tax year can provide more income to help you qualify for that perfect home loan but it has it own hurdles to overcome. The IRS will not be able to provide the transcripts until you have filed. The time frame for transcripts to become available after you file can vary. In the heat of tax time this may take 6-8 weeks or longer. It really depends on your taxes and how quickly the IRS is able to process them. If you file in early February it may only take 2-3 weeks while if you file on April 15th you may be waiting 3 months. Remember that the IRS still works through a system that is partially electronic and partially manual data input. The cleaner and simpler your taxes are the faster it will get processed.
Here are some great tips I found online here to help get your transcripts back quickly.
Steps to Getting the IRS to Provide a Transcript
- Make sure to e-file instead of mail in your transcript. E-files get processed faster.
- Pay any outstanding income due with the e-filing, even if it’s early. If the IRS cashes your check, your documents will process faster. And for the record, if you are owed a refund, your return moves to the front of the line, so that’s an additional advantage for you if you’re waiting on a transcript.
- The IRS Transcripts Hotline is 1-800-908-9946. After you choose your language of preference, enter your social and your address, you can order transcripts (if they are ready) to be mailed to you. This will take 10-14 days. It will only work though if the return has been handled by the IRS. If not, you won’t get to order anything. You won’t get past entering your information before you get hung up on.
- If you filed a joint income tax return with a partner/spouse, the Transcript Hotline will only find the return via the “primary” tax payer’s I.D. In my experience, that meant my husband, which seemed a bit archaic to me, but again, with the IRS, best bet is to go with the flow.
- If you need the return sooner than 10-14 days, you can get it faxed to you. But, you will need to get through to a human being to order that, and you can only do that by calling the 1040 hotline (for individuals): 1-800-829-1040. You will need to provide the social, the address, and a fax number. You must be at the fax at the time you make this call! The IRS will require you to confirm each page of the transcript as it is transmitted. You can’t have it faxed to a Kinko’s or to your real estate agent’s or lender’s fax if you aren’t physically standing next to the fax machine yourself to take delivery.
- Have something to do while you’re waiting for the IRS to take your call. Prepare to put the phone of speaker and do something while you wait. The IRS isn’t always fast, and they’re particularly glacial at tax time. I waited at least 45 minutes each time I called, trying to find out if our taxes were ready, and I had to call more than 20 times. I always made calls when I had stuff to do at the same time: laundry to fold, bills to pay, cards to write. My husband and I even made up some dance routine to the IRS hold music. Whatever makes the time you spend waiting more productive (and more fun?) and less stressful, do it.
- Finally, don’t give up! If you’re this far into the deal, you can’t give up. If you’re in escrow, you’ve paid a home inspector, an appraiser, had your income and credit analyzed, and hey—you found a house you want to make your own. You may be very tired of jumping through hoops, but keep your eye on the prize: your home
If you have questions about this topic please feel free to reach out to me any any time.
Be sure to visit my facebook page: www.facebook.com/home.loans.california
and my webpage: www.paramountequity.com/scott
Savings Made Simple® | Mortgage • Insurance • Solar
Here is my mortgage news letter for the weekending 4/5/13.
- Rates have been making great improvements this week due to bad economic reports. Now is the time to buy a home or refi your high mortgage rate. Call me today while the numbers are still in your favor!
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Paramount Solar’s hiring event is open to sales candidates of all ages, experience levels, and industries. A bachelor’s degree and at least two to five years of proven, inside telesales experience is preferred. Check out our available positions and register online today! Don’t forget to name drop and tell then I sent you. I know people, that know people.
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