Year-End Tax and Mortgage Planning Tips

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Year-End Tax and Mortgage Planning Tips

As 2018 is winding down, it’s a great time to think about your real estate goals for next year. I’ve had a number of conversations recently from past clients and friends who are thinking about buying a home in 2019 and want to make sure their 2018 tax returns will show what they need to qualify for a mortgage. Many of these folks are self-employed, and they have some flexibility in shifting income into this tax year versus postponing it until next year. Many of us have various tax write-offs that we can choose to take to lower the taxable income shown on our returns.


While not everyone has this flexibility, if you are self-employed or have some ability to adjust deductions and taxable income from one year to another, it’s a great opportunity to have this discussion. Because mortgage lenders want to see borrower’s most recent 2 years of complete income tax returns when they review an application, it can make the difference between getting approved for the home you want or not. (I am not a licensed CPA, so our discussion will be general and I will recommend you also consult with your tax advisor.)


Planning ahead can also give you the opportunity to review your credit and make sure there are no surprises on the report. If anything unexpected shows up, it’ll allow more time to dispute and correct any errors and make sure your credit profile and scores are as clean and high as possible. This will ensure that you’re eligible for the best interest rates.


Conforming Loan Limits Rising


We just received some good news from the Federal Housing Finance Agency that the conventional conforming loan limits are going up again in 2019. Starting in January, the maximum conforming loan limit for a single family home will rise from $453,100 to $484,350! Duplex, triplex and fourplex loan limits are even higher. This will help accommodate the higher real estate prices in the Central Texas area, under the better rates and terms offered on conventional conforming loan products.


Mortgage rates and home prices continue to rise here in Central Texas, so if you have been thinking about buying real estate, the sooner you do so, the cheaper it will likely be. I’d be happy to have a free, no-obligation conversation with you and help you position yourself for buying a home and getting great financing.


With over 25 years in this industry, I’ve helped thousands of families successfully purchase and finance homes, and I’d love to be a valuable resource to you as well. Please let me know how I can help you or someone you know and care about with trusted mortgage advice and assistance.


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