If you’re planning on buying a home in the next few months, you’ll need to get your 2016 taxes done, possibly even prior to the April 15 filing deadline…this is especially important if you recently got a big raise (and we hope you did!) If you’re looking to up-grade to a larger home, and you’re now making more money and qualify for a larger mortgage, you’ll want your tax returns showing that. This is very important for folks who are self-employed and business owners.
Mortgage lenders will need a lot of information from you, including your most recent tax returns, to approve you for a home loan. Getting your taxes
filed early will help prevent any delays in your mortgage approval process. And demonstrate you qualify for a larger loan than you would have in the past. Plus, think of all the stress you’ll avoid — knowing your taxes are done when others are worrying about the April 15 deadline! Drinks on the patio anyone.
Plus, if you’re expecting a refund, that extra cash will come in handy for the down payment or other closing costs on your new home. Even new furniture! By submitting your 2016 tax return early, you’ll also reduce the risk of tax fraud and the risk of having your refund stolen by identity thieves. The IRS has a Taxpayer Guide to Identity Theft with more information on this topic.
So don’t delay, get those taxes done and it will be one less thing to think about as you shop for a new home!
