As January comes to a close, we are once again welcomed into tax season. For some, this is a happy time of year where a big refund check will soon be on its way. For others, it’s a time of annoyance as a big check needs to be written to the IRS. But either way, a recent or upcoming house purchase can impact your tax returns quite dramatically.

As such, I am dedicating the month of February to taxes. Specifically, how they can impact your mortgage, and how your mortgage can impact them. This will include everything from what documents to keep after a mortgage to how to calculate income for various types of income to how to use a tax return as a down payment.

In the nearly 15 years that I have been a mortgage officer, I have consistently found tax season to be the most difficult time of year for new home buyers. They often do not know whether filing their taxes will help or hurt them, what documents will be needed to close the mortgage, and, because they are in the process of filing taxes, they are more acutely aware of the taxable implications of a mortgage. This can lead to a very messy and stressful process.

So if you take one piece of advice from this post and all of next month’s advice, it is to make sure you consult a mortgage officer up front before trying to buy a house at this time of year. It will take a lot of the guess work out and will make your life much easier.

If you have any questions about buying a house in Michigan, please contact me. If you have anything to add about tax season, please leave a comment.