IRS Tax transcripts

[cartwrna]

Hi everyone! Another worried post from me. We are applying for our mortgage in January of 2016 after we file our 2015 returns. They will ask for the 2014-2015 return correct? How do they go about this since transcripts won't be readily available for 2015? Looking at the transcript timeline it states 3-4 weeks after efile if we pay the balance in full with file. 4-6 weeks if we pay after filing, and like May if we setup a payment plan. We will owe taxes, if I go the payment plan route will there need to be so many payments made before we can close? If I pay in full while filing but transcripts are not available when it comes closing time are we in trouble? My lender said they have a 60 day period now for closing which will put us around April.

[cartwrna]

Anyone?

[mynameainttracy]

Taxes are not required to be filed until April so I don't think they will ask for them unless you are closing after April 15th.  Employers are not even required by law to send your W2s until the end of January.

[cartwrna]

I'm filing my taxes in January, do every year. I actually need them to use my 14'-15' taxes is why I'm curious

[mynameainttracy]

Similarly, we filed ours in January 2015. We closed April 17th. Our lender did not want our 2014 taxes. They used 2012 and 2013.

[cartwrna]

Ok. I'll have to talk to my bank about it.

[ezdriver]

Underwriters ask for two years of completed tax returns. If you want your 2015 tax year returns to be used, then wait until you file then apply for th emortgage. Sometimes they ask for three or five years. I had to provide tax returns for five years.

[cartwrna]

Hopefully they don't ask for that many, I have pretty good credit aside form one collection account from 2013. They said I won't even have to do rent verification since I have more than 3 trade lines. I messaged the loan officer I had talked to, to ask her about the returns. She hasn't gotten back to me though.

[Mouseman]

I provided copies of my 2014 and 2013 tax returns. The 4506-T was for 2014, 2013 and 2012.

Depending on your situation, the lender may ask for more or less tax return transcripts. I had no issues with them going back as far as they wanted - I have nothing to hide. However, keep it in mind, because if you would like the lender to only check 2015 and 2014 . . . it may not work for you.

[Anonymous]

Hello! If you need the income from 2015, then e-file as soon as you can and pay when you e-file.  If you need to set up an installment agreement, do it before you apply for a mortgage.  Some mortgage companies only want to see one payment made, while others want 3-6 on time payments.  Your monthly payment will be factored into your Debt to income ratio so make sure you get as low a payment as possible.  If you e-file you should have transcripts out there in 3-4 weeks.  When I e-filed, mine were ready in 17 days.  Good luck! Just be upfront with your lender on everything because they want to make the deal go through too!