Lenders don’t actually need 2018 tax returns until October in most cases, as October 15th is the final deadline for filing.
After April 15th, lenders will require 2018 tax returns OR a copy of the request for an extension that was sent to the IRS.
If buyers provide a copy of their extension request, they will have to also provide proof that all of the estimated taxes on the extension form are paid.
Lastly, for self-employed borrowers it is sometimes better to not file the most recent year’s tax returns if their income was lower in the most recent tax year (and if debt ratios are tight).
Lenders will use the income from the previous two years, e.g. 2016 and 2017, for qualification purposes and not require the most recent year’s taxes until the final extension deadline (as mentioned above).
Caveat: In the absence of 2018 tax returns, lenders will often require 2018 Profit and Loss Statements that sometimes (for Jumbo investors in particular) need to be audited or signed by an accountant or tax-preparer.
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