Buyer's Beware! This Could Stop You from Qualifying for Your Dream Home
Buyer's watch out! If you're taking this deduction on your taxes, it could stop you from purchasing your dream home. For just about any loan product available now, buyers are required to provide their lender with a copy of their tax returns for the past two to three years. The lender will also request a copy of your tax returns from the IRS, to make sure the returns are the same. If your loan officer overlooks this deduction - unreimbursed job expenses - chances are, the underwriter will not. An unreimbursed job expense can include items such as uniforms, teaching supplies, meals, or any other expense related to your job that is not reimbursed by your employer.
Some deals have fallen apart, because buyers decided to claim unreimbursed job expenses on their tax return. When you do this, lenders will deduct the unreimbursed job expenses from your yearly income. Depending upon the size of the unreimbursed job expenses, it can dramatically impact what you qualify for and what you definitely will not qualify for. One buyer recently qualified for a $96,000 townhome. After the loan officer noticed that she deducted almost $7,500 on her tax return for unreimbursed job expenses, she now only qualifies for a $50,000 home! Proceed with caution before claiming an unreimbursed job expense, as it could prevent you from owning your dream home!
Some deals have fallen apart, because buyers decided to claim unreimbursed job expenses on their tax return. When you do this, lenders will deduct the unreimbursed job expenses from your yearly income. Depending upon the size of the unreimbursed job expenses, it can dramatically impact what you qualify for and what you definitely will not qualify for. One buyer recently qualified for a $96,000 townhome. After the loan officer noticed that she deducted almost $7,500 on her tax return for unreimbursed job expenses, she now only qualifies for a $50,000 home! Proceed with caution before claiming an unreimbursed job expense, as it could prevent you from owning your dream home!
Posted by Lifelong Realty at 5/5/2010 1:04 PM 
Categories: Qualifying for a Loan, Home Buyers, Virginia, Buyers
Tags: Qualifying for a Loan Homes for Sale Hanover Richmond Virginia Unreimbursed Job Expenses Henrico Chesterfield Buyers
Categories: Qualifying for a Loan, Home Buyers, Virginia, Buyers
Tags: Qualifying for a Loan Homes for Sale Hanover Richmond Virginia Unreimbursed Job Expenses Henrico Chesterfield Buyers
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