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Loan Denied

New Visitor

Loan Denied

1 day before closing and get a call from my brokers processor saying my loan was denied because 07 taxes did not comeback same as what was pulled from IRS.Is there any thing i can do to salvage this loan.Also put down 2000 in earnest money do I get that back.
11 REPLIES
Regular Contributor

Re: Loan Denied

I'm SO sorry to hear that. I'm going through something similar. My realtor said that if I wasn't able to qualify for the loan, I do get the earnest $$ back because it's written in the contract that way. Is one of your conditions being able to get qualified?

 

Also, is there anything the LO can do? Can you call another LO? I feel for you and sending good thoughts your way.

 

Karen

My Scores: 7/2 TU 548 EQ 533 EXP 588
8/20 TU 644 EXP 679 EQ 673
Community Leader
Valued Contributor

Re: Loan Denied


TheStudent wrote:
1 day before closing and get a call from my brokers processor saying my loan was denied because 07 taxes did not comeback same as what was pulled from IRS.Is there any thing i can do to salvage this loan.Also put down 2000 in earnest money do I get that back.

 

Why did your tax returns that you provided not match the IRS? 


EQ 679 EXP 700 TU 763
Established Member

Re: Loan Denied

what? they are going to pull tax returns when you apply for a mortgage.....i am meeting my LO on monday and he said nothing about bringing in tax returns. Should I take them? I have been paid w-2 forever. 
4-09, EQ-589, TU-616
5-09, EQ-622, TU-633, 6-5-09 eq633 tu633
Frequent Contributor

Re: Loan Denied

I never had to provide tax returns, but I DID -- in the first batch of paperwork supplied by my loan broker along with the loan application -- sign a release allowing him to request them from the IRS. Seems to me like some of these loan officers are asking you to do their work for them (on the other hand, it's common practice to make a copy of your tax returns before sending them off, then keeping them on file for a few years).

New Contributor

Re: Loan Denied

yup they asked for hubby's as well and they compared them to the ones they got from the IRS making sure everything matched so to speak.they have to verify you are who u say you are and that you haven t lied about your income?!... that's what i was thinking.
Mrs. Dee
Community Leader
Valued Contributor

Re: Loan Denied

The reason they have you sign the release is for auditing purposes.  They may request verification from the IRS regarding the your taxes.  If the IRS printout does not match what you provided then it becomes a big problem.  The W-2's and tax returns provided should be exactly what the IRS has.  If, for some reason, you amend your tax returns during the loan process then you need to provide your LO a copy of the amended return. 


EQ 679 EXP 700 TU 763
Established Member

Re: Loan Denied

so it is a  "they may" request this, not a "they will" request this?
4-09, EQ-589, TU-616
5-09, EQ-622, TU-633, 6-5-09 eq633 tu633
Frequent Contributor

Re: Loan Denied

I've talked to about half a dozen loan officers and they have all said its standard practice these days to request transripts from the IRS.
Established Member

Re: Loan Denied

I am applying for home loan in my name alone.  However, my husband and I file our taxes together.

The transcript would be joint income.  How would that work with the mortgage approval?