E Mortgage Blog

In general, the documentation you will need includes:

  Check for application fee

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Property Information (if you already have a contract on a house)

 Purchase Agreement.

 Copy of legal description and MLS sheet. 

 If you are selling your current home, copy of listing contract.

 If you have sold your current home, copy of settlement statement (HUD-1).

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Income & Assets

 Pay stubs for the last 30 days.

  For the past two years:

 Names and addresses of each employer. 

 W-2s

 Statements for each bank, mutual fund, and/or investment account for the last three months.

 Estimated value of personal property and furniture. 

  If you have made any large deposits to your accounts:

 Explanation and source for deposit.

 If large deposit was a gift:

 Signed gift letter (lender can supply).

 Copy of gift check.

 Copy of deposit receipt.

  If you own more than 25% of a business:

 Corporate or partnership tax returns.

  If self-employed:

 Tax returns for the last three years (with schedules).

 Year-to-Date Profit and Loss Statement prepared by an accountant. 

  If you own rental property:

 Tax returns for the last two years and current rental agreements.

  If you are retired:

 Pension Award Letter.

  If you receive Social Security:

 Social Security Award Letter.

  If you are counting child support as income:

 Copy of divorce settlement.

 Copy of twelve months of cancelled child support checks.

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Debts

 Names, addresses, account numbers, balances and monthly payments on all current loans. 

 Explanation of credit report anomalies, including:

 Late payments, credit inquiries in the last 90 days, charge-offs, collections, judgments and/or liens.

 Bankruptcy filed within last seven years (bring a copy of your bankruptcy papers). 

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VA Loans

 Copy of DD Form 214, Report of Separation.

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Miscellaneous

 Photo ID and proof of Social Security number. 

 Residence addresses for the past two years. 

 If applicable, a copy of your divorce decree. 

 If you are not a citizen, a copy of the front and back of your green card. 

1. Evaluate Capital Gains: The current long-term capital gains tax rate, with some exceptions, is either 0 percent or 15 percent depending on what ordinary income tax rate you fall into. But in 2011, these rates jump to 10 percent and 20 percent. That means if you have some investments that have done well, you may want to consider selling them in 2010 to take advantage of the lower tax rates. If you currently fall within the 0 percent long-term capital gains rate, the decision may prove to be an easy one. But even for those that fall into the 15 percent bracket, saving 5 percent over next year's higher rate is significant. Of course, the tax consequences of an investment are just one factor to consider when deciding whether to sell.

2. Make Money Now: As you've probably heard, some of the higher income tax brackets will get even higher next year. The top two rates for the 2010 federal income tax brackets are 33 percent and 35 percent, which will move to 36 percent and 39.6 percent in 2011. The effect these changes will have on lower tax brackets depends on what Congress does this year, but the lower tax brackets are set to increase as well. If you fall into a rising tax bracket, it may be in your best interest to accelerate income into 2010 if at all possible. This could be particularly helpful for small business owners and independent contractors who have some control over the timing of income.

3. Green Your Home: There are several energy tax credits that are set to expire at the end of the year. For example, you can get a tax credit up to 30 percent of the cost ($1,500 maximum) on certain qualifying home improvements, such as roofs, water heaters, and HVAC systems. Make sure to verify that the product you want to install qualifies for the tax credit. And get the work done this year before the tax credit expires.

[Visit the U.S. News Personal Finance site for more insight and money management tips.]

4. Get Organized: Every year on April 15th at about 8 pm I tell myself I'll be better organized the following year. While it's taken several years of last-minute tax return filings to finally motivate me into action, this year I'm actually organized. The key is not to wait until tax season. Keep records of your taxable investments to help you calculate gains and losses. Keep your business receipts organized and separate from personal expenses. If you've made home improvements that qualify for tax credits, keep your receipts in a separate file. Staying organized takes just a few minutes week, but it can save you a lot of headaches when it comes time to file your taxes and will reduce the risk that you'll miss a tax deduction.

5. Plan Your Tax Preparation: Many use online tax software to prepare and file their tax returns. For those folks, they have some time before the 2011 versions of the tax software are released. But if you plan to have a tax professional prepare your return, there are good reasons to hire them now. First, you can take your time to find the best tax professional for your needs, taking into consideration recommendations from friends and family. Second, they can further assist you with tax planning now in anticipation of the many changes to the tax code in 2011.

It's important to recognize that tax planning is specific to each individual's situation and can involve complex analysis. So if you think some of these tax moves may be right for you, consult with a tax specialist before making any decisions.

http://news.yahoo.com/s/usnews/20100902/ts_usnews/5taxmovestomakenow

We recomend the Ashton Group at www.ashtongroup.netfor tax preparation and planning!


Carl Ashton Mortgage Banker
 
Bright Green Home Loans
 
1605B Prosperity Farms Road
West Palm Beach, FL, FL 33403
 
Phone: 561-210-3000
Fax: 561-624-1764
Cell: 239-580-9977
 
Processing: 561-249-6995

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So you and your clients reap the tax deductible rewards of home ownership

Agents and Brokers you are welcome to copy this article and use it in your offices to give to your clients.

Considering we are entering deep into tax season...If you’ve purchased, sold or refinanced your home in the past year, tax season is the best time to reap the benefits of being a homeowner! Take advantage of some of these tax breaks today and you could enjoy a bigger return
in April!

Mortgage Interest. For most homeowners, the bulk of your mortgage payment is going towards interest – and that’s a big tax break for you! The mortgage interest on your primary residence is fully tax deductible, unless, of course your loan is more than $1 million.

You can also deduct late payment charges as home mortgage interest as long as the payment was not late due to a specific service received in connection with your home loan. Also, if you pay off your mortgage early and incur a prepayment penalty, you can deduct that penalty as home mortgage interest (subject to the same requirements for late payments).

Property Taxes. Your property taxes - the annual taxes based on the assessed value of your property – can also be deducted. Your mortgage interest statement may list the amount of real estate taxes you paid if your taxes and homeowners' insurance went into an escrow account when you closed on your mortgage. You can also review your cancelled checks to determine your total real estate tax deduction.

Loan Points. Any points you paid to get a better rate on a home loan, are tax deductible in the year you made the purchase as long as:

• The loan is secured by your primary residence and it was used to buy, improve or build the home.
• Paying points is an established business practice in your area;
• The points are computed as a percentage of the loan principal;
• The points are clearly defined on the buyer's settlement statement; and
• You put cash into your home purchase in an amount at least equal to the points you were charged.

Loan Points on a Refi. The points you paid on a refinanced loan may also be tax deducible, however in most cases, the points must be deducted over the life of the new loan. So if you paid $2,000 in points to refinance a 30-year mortgage, you can deduct $5.56 per monthly payment, or a total of $66.72 if you made 12 payments in one year on the new loan.

Interest on a Home Equity Loan. The interest on a home equity loan may be tax deductible up to $100,000. However, if your home equity loan, when combined with your first mortgage amount, increases the debt on your home to an amount more than the property's actual value, you’ll face deductibility limits. In these cases, the IRS allows you to deduct the smaller of interest on a $100,000 loan or your home's value less the amount of your existing mortgage.

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