For those who haven’t seen a tran­script, it’s basically a summary of every­thing you would see on a 1040 tax return filing. Form 1040 tax returns are typically request­ed for a mortgage application along with all schedules/worksheets, and they give all de­tails as to how the tax return was filed. So why would a mortgage company need a transcript? The most important reasons are the following:

1) Transcripts will show figures from all applicable schedules that may not show on the 1040 tax returns.

2) A consumer may be giving their mortgage company a tax return, but what if their accountant did a small amendment that the consumer forgot to disclose? The transcripts will show the correct figures as received by the IRS, including any updates.

3) You can buy a home with taxes due, but you can’t if the IRS files a lien. The con­sumer transcripts will show if the consum­er had a large tax bill due. If there was, the lender is likely to ask for proof that the tax­es were paid. This is important to know be­cause if you need to close quickly and have not filed your return, which you are using to qualify, you might have a real problem getting the transcripts back in time before the closing. Therefore, it’s best to have your accountant speak to your broker and make sure everyone is on the same page with the “timeline.” There have been many “hor­ror stories” of consumers who had to push off closings (and in some cases even totally lost the deal) due to the tax transcripts not being available, which can result in sub­stantial costs.

Eli Garfinkel of Funding Resources Mortgage Com­pany is an experienced and reputable loan officer. With a list of extremely satisfied clients, Eli spe­cializes in great customer service and dealing with complex cases. Eli is available to answer any mort­gage questions, without any obligation. Eli can be reached by phone or text at 732-278-6526, via email at [email protected], or in the office at 732-364-7373 ext 22.

By Eli Garfinkel