Buying my First Deal, HELP!
Hi BP!
My husband and I are getting ready to purchase our first deal. The lender needs to look over our taxes. We haven't done our taxes for 2017 yet will be filing this weekend.
My husband is a 1099 employee and usually claims a lot of itemized deductions so we don't pay as much in taxes. My realtor advised against that this year. She said that lenders want to see that you can afford to pay your taxes. So is this true and if so what percentage of our tax burden should we pay?
Hope that all makes senses, I hate taxes lol. Thanks for all your help in advance. Btw we plan to invest near where we currently live which is New Jersey.
Most Popular Reply
The amount of tax has no impact on the loan. It is income that matters. We look at your current debts and net income. We also take into account the proposed new payment. What we do though is give you partial credit for the proposed rent on the property that can help you qualify.