As I’m sure you’re aware, the April 15 tax deadline is fast approaching.
What you might not have considered is how your tax return could impact your future homeownership goals.
At Clemans Housing Network, we’re dedicated to helping first-time homebuyers and current homeowners across Southern California understand how their finances—including their taxes—can shape their mortgage options. Whether you’re hoping to buy a home or refinance in the near future, here’s what you need to know.
Smart Deductions Can Help—or Hinder—Your Mortgage Goals
Loan approvals are heavily based on your income, which can get tricky for anyone who’s self-employed, owns a small business, or works as a freelancer.
If that’s you, you’re probably already thinking about maximizing deductions to lower your tax bill. That’s smart—but it’s important to know that these deductions can also lower your qualifying income on paper, which may reduce the loan amount you’re eligible for.
That said, you don’t need to avoid deductions altogether—but if you’re planning to buy a home soon, it’s smart to be intentional. As an independent lender, I strive to be a resource for my clients in this area—to help them strike the right balance.
Want to make sure you are having the right tax planning conversations, that align their financial and homeownership goals? Give me a call to discuss your situation.
I can equip you with key talking points to make the most of your discussion with a tax professional.
Non-Cash Deductions Can Work in Your Favor
Here’s one of the lesser-known tax insights I share with clients: Not all deductions hurt your mortgage application.
If your tax return includes non-cash expenses like:
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Depreciation (on assets like vehicles, buildings, or equipment)
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Depletion (such as the reduction of natural resources)
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Amortization (spreading out certain business expenses over time)
…those items may be added back to your income when your loan application is underwritten. These write-offs reduce your taxable income—but since they don’t reflect real cash spent, many lenders (including myself) can work with you to ensure they don’t unfairly impact your qualifying income.
Understanding these tax nuances can make a huge difference—and that’s exactly why I take the extra time to educate my clients on tax opportunities, like this one, and explain how it may actually benefit their taxes and their loan options.
Partner with the Right Pros: Tax & Mortgage Professionals
Your tax return isn’t just something you file and forget—especially if you’re planning to buy or refinance a home.
Making sure your tax professional understands your long-term financial goals is key, and when you pair that with a lender who knows how to interpret your return from a mortgage perspective—you’re in a strong position to make the best moves for your future.
If you’re planning a home purchase or refi in the near future, now’s the time to have those conversations. And if you ever want to talk through your situation, I’m always here for a no-pressure call.
Let’s Align Your Taxes and Mortgage Goals
I know firsthand how overwhelming this process can feel. I’m navigating it professionally and personally right now after buying my own home in 2023. So let me say it again –– You don’t have to (and shouldn’t!) make these decisions alone. I’m here to help you feel confident, informed, and empowered about how your tax decisions affect your mortgage options.
If you’re in North County, San Diego, or anywhere in Southern California and want to chat about your homeownership goals, I’d love to connect.
