I applied for a mortgage loan with FGMC and finally received an update after my file was sent to underwriting for approval. This was the email that I received...
"Your file was denied by my underwriting department. After reviewing your tax returns they noticed that there was about 10k in unreimbursed business expenses which we can’t use as part of your income. Once the change was made to you monthly income to reflect this loss your debt to income ratio became way to high for us to be able to get an approval."
I emailed back explaining that I work from home quite often and was advised by a tax preparer that I can write off all things used for my job when I work at home, such as my cell phone bill, utilities, and internet service, etc... If I knew that it would cause me be denied a mortgage loan I would've done things much differently. I'm wondering now if I should amend my 2011 tax return or should I try to go with another lender? I currently make $42k annually and my credit scores are as follows: EX 657, TU 594, EQ 584. It appears that everything else was fine with underwriting it appears but this issue. The loan officer submitted the loan for $150k. I have several student loan that are all in deferment and a car note of $516 that has less than 12 payments. I have no credit card debt or any other revolving debt. Any help is greatly appreciated!!
