I was just pre-approved for a VA Loan through BofA. They wanted Military ID, ID, Bank Statements, D-214, 2 years W2s, and Paycheck stubs. Do they need tax returns for the last few years? I have filed, but owe every year and am on a payment plan paid every month to the IRS. will this affect me when going to close on a home???
The lender will at minimum order an IRS Form 4506-T (T for Transcript) to know if the data you've supplied matches with what the IRS has. The repayment play may come up at that time. In some cases you do not have to send in your returns based primarily on the nature of your income. I'd let your loan officer know right away how much your monthly payments are. You are preliminarily approved based on known data. This unknown factoid could push your purchase power below where your price intentions are now. Get the IRS payment info out in the open. It won't hurt your abilty to purchase but will impact the loan amount you are trying to qualify for.
Yes, you should show your tax returns to your loan officer as soon as possible to make for a quick preapproval BEFORE you go looking for a house. As to the IRS, Payment plans can be acceptable as long as your debt ratio is still within those parameters required by VA .
REAL wrote:
I was just pre-approved for a VA Loan through BofA. They wanted Military ID, ID, Bank Statements, D-214, 2 years W2s, and Paycheck stubs. Do they need tax returns for the last few years? I have filed, but owe every year and am on a payment plan paid every month to the IRS. will this affect me when going to close on a home???
