Here’s What You Need to Know About Your Taxes and the Mortgage Prequalification Process

Whether you’re an existing homeowner or new to the housing market, your taxes are an important component of the homebuying process—not only leading up to April 15, but 12 months out of the year.

The reason? Your tax return gives lenders a clear picture of your financial standing. It provides key details that mortgage lenders analyze, including your debt-to-income ratio, employment status, and itemized deductions. Your tax return also reveals any financial liabilities, like whether you pay alimony or receive unemployment income. And as for self-employed applicants, returns provide a clearer snapshot of fluctuating income detailing write-offs and expenses.

In short, your tax return provides context and tells a story about your finances. It’s a comprehensive document—and what lenders need to evaluate your eligibility during the mortgage qualification process.

If your tax return is complex or reflects unusual expenses, discuss with one of our mortgage experts the solutions that may be available to you. You’re then one step closer to qualifying for a mortgage—and settling in your dream home.

Digital solutions make prequalification made easy

Let’s face it. Many homebuyers procrastinate for a reason: the prequalification process is complex. But with First American Bank’s experienced mortgage team by your side, it’s never been easier. Our loan officers can guide you through the process using our digital prequalification process, which helps to analyze the more daunting parts of your application. Our digital system makes staying organized easier, so you have more time and energy to focus on finding a home that suits you and your family.

Bridging the gap between you and your dream home

Once you start working with a First American Bank loan officer, they’ll stick with you every step of the way. If you hit bumps in the road, they’ll work closely with you to analyze any previous debts and any outstanding payments. These obligations can impact your eligibility for certain mortgage products, so our lenders keep these factors in mind as they collaborate with our third-party vendors to explore your refinancing options.

As our mortgage team diligently works to guide you through the underwriting process, you’ll have complete transparency into their progress. No matter where you are on the home ownership journey, we’ll provide ongoing communication.

From the moment you meet one of our loan officers and to your final signature, First American Bank is committed to making sure your needs are met. With a distinct human touch powered by sophisticated technology, we’ve made financing your next home easier than ever before.

First American Bank’s loan officers are highly knowledgeable about tax guidelines, but are not authorized tax professionals. Always consult with your tax or legal advisor before entering into any transaction.

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