If you’re facing a tax deadline, it can be tempting to try to pay your taxes in full. But if you don’t have the money in savings and need to borrow a residential property tax loan, there are options that can help. Here are some tips to get you started:
Tip #1: Find out if you qualify for an emergency tax loan. If you’re facing an unexpected expense, such as an upcoming medical procedure or repair bill, you may be eligible for an emergency tax loan.
Tip #2: Check with your lender about a home equity loan or line of credit. If you have equity in your home through a line of credit or home equity loan, you can use those funds towards paying this year’s taxes.
Tip #3: Request an extension on your taxes using Form 4868 from the IRS website — but don’t wait until the last minute! You’ll have until October 15th to file Form 4868 electronically and until October 31st to file by mail (with payment).
Tip #4: Make sure that your home is in good shape and that it can be easily sold if needed. If you have a lot of work to do on it, don’t wait until the last minute to get started on that work—it’s better to do it early and finish up in time for the tax season than rush and not finish in time.
Tip #5: Make sure that you have all of your paperwork in order and ready for your lender—your lender will want documentation from your bank showing that they have access to funds if they need them (for example, an authorization letter).
Tip #6: Gather all of your documents together so they are ready when your lender asks for them—this includes copies of all paperwork related to any mortgages or liens on your property as well as copies of any recent tax returns (you may also need copies of any records showing how much money was paid into each account).
Bottomline
If you are a first-time home buyer and find it difficult to come up with the needed down payment for bank-backed loans, you may apply for a home financing loan from a mortgage company. The above steps will help you in getting your hands on government-guaranteed low-income housing loans or residential property tax loans fast.
