Re: Could be denied due to my taxes???? Need insight please
10-05-2012 12:14 PM
I agree wholeheartedly with deg757. The main issue here is correcting your tax return.
As to the mortgage approval, if the income as reported is not enough to support your purchase, then the underwriter will deny the file.
You may want to withdraw your application rather than have a denial, especially if you are getting a government type loan (USDA/VA or FHA).
You can re-apply after you have corrected the tax return. You may need to supply additional years of tax returns and a LOX to show that the one-time erroneous return is an exception and not the rule. I don't know. Some of the lenders are very wary of an amended return just before mortgage applications.