Here is why we always need copies the borrowers last 2 years tax returns (as of this post 2007/2008 1040’s)
We’ve had 2 files last week fall apart due to 2106 expenses that appeared on the 4506-T results. Many Lenders do not order the 4506-T results until after loan documents have been drawn (i.e.- very late in the loan process). We do not want to get that far into the process and then have everything fall apart.
2106 Expenses (UNREIMBURSED EMPLOYEE EXPENSES) are located on the schedule A of your 1040’s, this is the 3rd page of the 1040’s. These expenses must be subtracted from income to property calculate your income for underwriting purposes.
We need your tax returns so that we can review them before submitting your loan package to our investors. It does not make a difference what you do for a living. Due to underwriting guidelines continuing to tighten we are forced to get very stringent on not processing loans for clients that do not include complete tax returns. It is not worth putting yourself through the time, hearthache, emotional roller coaster and expense of the loan process only to find out right before your loan funds that your file is going to need to be completely re-underwritten. This may force you to have to scramble to get a gift and payoff debt, or worse, put more money down and redraw docs.
At IET Capital we prefer to PROACTIVE, rather than REACTIVE.
14408 Whittier Blvd
Whittier, CA 90605
562 360-1027 Tel
562 361-5988 Fax