We pre-approved about 7 million buyers over the last few weeks (I exaggerate a little but 2015 looks very promising). And, about 4 million of those buyers (slight exaggeration) want to make offers immediately AND close in 14 days AND file their income tax returns…AND they can’t.
If a buyer files his tax returns, lenders cannot fund his mortgage until his “4506t” form comes back from the IRS, verifying that the tax returns in the loan-file are the same as those filed with IRS. This process can take up to six weeks during tax season.
Hence, buyers should NOT file tax returns if they are making offers now with short escrow periods. They should just rely on 2014 W2 forms, and 2013 taxes (which are valid until October).
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646