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Amending taxes after getting mortgage

Both wife and I are self employed and didn't do any deductions on our taxes, so we'd be approved for a loan, since it would show we made more. Of course, in turn, we had to pay a ton for taxes. Can we amend our taxes after we close on the purchase of our next house, and not risk losing our new mortgage?Thanks! by Joshhtn256 from Murfreesboro, Tennessee. May 7th 2018 Reply


Mike Shaw (MikeShaw)
#180 ranked lender in Colorado - 9 contributions

That is an interesting question yet more of a moral one. It is very possible you could get away with what you are proposing. Banks cannot verify or prohibit changes to future income. However you are changing past income. Loans are audited for about 90-180 days after they close where they will request IRS records and compare to the original. If they saw an amended return I'm not sure how they would respond, maybe nothing since it happened after closing or maybe it would raise a red flag. Generally it would not come up except in the event of foreclosure in which case they would audit in more detail. The question is if you can get away with it is it honest, ethical, moral? Are you providing dishonest documentation of income? Why not just consider the tax bill the cost of buying a home? This is not tax advice, always seek professional legal and tax advice from a CPA or lawyer.

May 8th 2018
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,455 contributions

Yes.. you can amend your returns any time.. and once the loan is closed, the lender cannot undo your mortgage.. even if an audit was done, and they re-pulled your tax transcripts, (highly unlikely since the 4506T you signed is only valid for 90 days), there is absolutely nothing illegal ( or immoral) about amending your return. Keep in mind that underwriters are trained in identifying S/E borrowers who back off deductions in a given year so they can qualify.. There's an unspoken range that seems to be allowable.. if what you did was outside the range, then the underwriter would have never approved it. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

May 8th 2018
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