Mortgage ReFi Question

I was just approved for a refi from my bank, just waiting on the appraisal.

The loan officer said everything is a go and Im approved but said they needed 2004 0r 2006 tax returns as Im self employed (I provided 2005 already)

Here is my question: My 2004 return shows a loss with no income for me, it shows income for my wife. Do they just need two years of returns on file? will my 2004 return in anyway reverse my approval since im allready aproved? should i even need to worry about it? I have not started the 2006 return so I cant give them that all I can give them is a profit/loss for 2006.

Any info or reassurance would be great.

thanks

 

Hey I am here in Orlando, FL as well and work in the mortgage and real estate biz! The 2004 could have an effect because yes the bank has approved you but probably contingent on verifying your income as well as any other paperwork they may be asking for and they want to see your income for 2 years. If you can wait do so. Also, depending on your situation i hope you dont plan on selling anytime soon.

If you have any other questions feel free to pm me.

 

As a Mortgage Broker I can tell you that your bank pre-approved you contingent on proof of income based on personal tax returns.

If the bank is not satisfied by your income your loan will be declined , that is the main reason why people go through a stated income verified assets program.
(SIVA) , In that case you will only state your income without any proof.

The difference in rate between a Full Doc Loan (what the bank preapproved you for) and a Stated Doc loan is like 1/4 of a point rate.

Profit an Loss for 2006 will work if you are willing to continue that way , just make sure that the income that has been reported on previews years will be enough. (called DTI= Sum of all your monthly expenses + mortgage payment / your Income) If that number is Higher than 46% , The bank will cancel the pre-approval and loan will be denied.

Hope it helped.

Bernard

 

Ok I have been approved not pre-approved.

the loan has been to the underwriters and came back approved.

so this is not on a pre-approved loan but an approved loan.

 

I'm a mortgage LENDER - and I hate to say it, but it aint approved till they fund your deal! no matter what anybody says... if your 04 returns show a loss, then most likely you can expect an increase in the rate, or change in the program.... I doubt they will deny you a loan, just the one they said you were approved for... now if its a local bank, and you have deposit business with them then all bets are off, since they can do as they please... I worked for a bank that once the CEO told a customer he was approved... it did not matter if we could do the loan or not ... we funded it and held it on our books.

if you need any further help, send me a PM... I'll be happy to help.

Tom

 

Thanks for all the info guys

I had my accountant draw up my 2006 returns today and sent them over to the bank. spoke with my loan officer and was assured it was a done deal as my 206 returns show a large increase in income over my 2005 which was not shabby to begin with.

thanks alot again this refi is life changing