Stress Free Mortgage Tax Season Tips: What You Need to Know About Filing Taxes for a Home Purchase or Refinance

This is the time of year where many start to think about their next big move in regards to their home – whether that is purchasing a new property, refinancing or maybe even getting cash out of your home for a big remodel! Either way, if you file taxes and especially if you are self-employed, then this article is for you.
Although everyone files a tax return and wants to maximize their deductions, this can be an issue when getting a mortgage loan. For example, if you file a Schedule C for self-employment, then you may have deductions for expenses such as auto, insurance, travel, etc. When you are trying to get a home loan, a lender will use your net income after all these deductions, and although the gross income you earn may be strong, the net income may not be. It’s smart to be aware of how many deductions you are taking when you are looking to purchase, as it could work against you in the end. Also, if you want to buy a home this year, it may be time to pay a bit more in income taxes to get that lower rate.
To make sure you are prepared for that purchase or refinance, talk to your tax preparer before you file in 2025. They will be able to guide you in making the best decision with your income for your taxes if you are planning a big financial change. And, most importantly, don’t forget to call Stress Free Mortgage when you are ready to make your next move! 661-295-0555.