"How Your Taxes Can Make or Break Your Home Purchase"

1. Impact on Loan Approval & Mortgage Terms

   • Lenders evaluate your tax returns to assess your financial stability. If you have unfiled taxes or discrepancies in your returns, it can hurt your chances of getting approved for a loan.

   • A clean tax record can help you secure better loan terms (like lower interest rates).

2. Understanding Deductions & Tax Benefits

   • Homeownership comes with significant tax benefits, such as the mortgage interest deduction and property tax deduction.

   • Understanding how these deductions affect your taxable income helps you plan your finances properly.

     
     

3. Tax Withholding Adjustments

   • Purchasing a home can increase your deductions, leading to the potential need to adjust your tax withholding at work.

   • This helps you avoid underpaying or overpaying on taxes throughout the year, ensuring you have the proper balance come tax season.

     
     

4. Capital Gains Considerations for Future Sales

   • If you plan to sell your home in the future, capital gains taxes may apply. Being aware of the exemption for primary residences can help you plan ahead for a tax-free profit (up to $250,000 or $500,000 for married couples).

   • Understanding this now prepares you for the tax implications down the line.

     
     

     Please consult your tax preparer for all taxes questions. I'm always available for any real estate questions you my have.