Can a mortgage lender calculate pending property tax exemptions into a loan?

Asked by Vintagesoul, Chicago Heights, IL Thu Mar 29, 2012

My husband and I recently were pre approved for a mortgage loan. We qualify for a veteran and homebuyers property tax exemption, but found out that the taxes on the property we are looking to purchase are overassesed (9K and counting) and no exemptions have been claimed over the past 5 years. In essence,the taxes are too high for our lender to qualify us for a mortgage. Is there a way to have the exemptions considered prior to obtaining a true mortgage thru our lender? Or is there a way to start the appeal process before purchasing the home. Thanks for any help

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Suzanne Hami…, Agent, Orland Park, IL
Thu Mar 29, 2012
Yes. They need to ensure your debt to income ratio meets their requirements. Property taxes are a requirement. They can use the real taxes with exemptions, but will they? It depends on the mortgage broker - some do and some don't. You can get the correct assessment for the home from the township assessor. IF they will give it to you in writing, you can use that and most mortgage brokers will take that. I would try that angle and if it doesn't work, you may need to get a mortgage lender who will calculate the real taxes or get another property, unfortunately. Or pay down debt or increase your down payment to make it work.

This is a real problem lately with non homeowner owned properties. The taxes are artificially inflated because they have not been reassessed and they are artificially inflated because the exemptions are not in play.

You can not appeal property taxes unless you are the owner of the property, to my knowledge.
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