Have commitment/now in pre-closing quality control?

Question

We are first time homebuyers. We went through a VERY hard underwriting process because of my husband's self employment status. We had to have our accountant do an amended tax return, backing out our writeoffs, so we could get our home. They submitted the amended tax return to underwriting...all went ok, and we got the commitment. We did not file the amended return yet because we are going to owe the IRS $8100. I don't want to file until I am 100% sure I am getting the house so I don't have to pay that extra money for taxes AND not get the house.

They have ordered the appraisal, etc., but now it is in "pre-closing quality control" for a week. NOW the banker calls and said they have some concerns about our tax return!

I am ready to throw in the towel and keep on leasing the house that I am in.

Answer 1

It may be a good thing.  Keep saving more money to put down on the house you want.  As you see now it is not always good to try and write off things that really should not be writeoffs.  

If you do get the house where are you going to get the $8,100 for the taxes (that is for 2007 what about 2008).  

Wait another year or two.

Answer 2

You're pushing a rope.  If you have the option of terminating the contract without too much of a penalty, it would probably be in your best interest.  You're trying too hard to make something work that sounds like it's marginal to begin with.  Give yourself some more time to save up some more money for a down payment.  The more money you invest in the home, the less risk the lender assumes and the more likely you'll receive the loan with less hassle.  Self-employment is always a doozy....I know as I've been S/E for almost 10 years.  Re-think your decision to purchase at this point.

Answer 3

I've heard of some odd terms before but never pre-closing quality control.  the tax return I get, and the banker did do the right thing in advising you to refile, but they should have told you that you would have to pay the taxes, this is a draw back of being self employed, getting a mortgage is painful.  Your correct in not filing, why pay, especially if they do not approve you.  Here's the question I have for you, is your rate locked?  If your rate is not locked, then you have a decision, rates are going to be fluctuating until the election is over, and they've been rising the last 3 days.  What may have started as a 6 or 6.125 is probably a solid 6.5 right now, and another week most likely will not help.  Honest opinion is that with the market the way it is, rates where they are and the uncertainty of your situation, I may reconsider.  I'm a strong believer in home ownership since you can write off interest paid, but it may be a blessing if you don't get approved, especially if your not locked in, if you are, keep pushing, good luck