Can Unpaid Taxes Stop Your Home Purchase in McKinney? Brandon Scribner Explains.

Hey there, future homeowner! It's Brandon Scribner here, your go-to top realtor in McKinney and across the Dallas-Fort Worth metroplex. I get a lot of questions from folks looking to jump into the housing market, and one that often pops up, especially around tax season, is a real head-scratcher for many: "Can I still purchase a house if I haven't paid my taxes yet?"

It's a fantastic question, and one that highlights a common misconception. The short answer is: generally, yes, you absolutely can! Let's break it down, because understanding the nuances between *filing* and *paying* your taxes is key when it comes to securing a mortgage.

When a lender evaluates your eligibility for a home loan, they’re primarily looking for stability and responsibility. The biggest red flag for them isn’t necessarily unpaid taxes, but rather *unfiled* tax returns. If you haven't filed your taxes for previous years, lenders can't accurately assess your income, debt-to-income ratio, or overall financial picture. This lack of transparency makes it very difficult, if not impossible, to get approved for a mortgage.

However, if you've filed your taxes but owe money to the IRS, that's often a different story. Many lenders are willing to work with borrowers who have an established payment plan with the IRS. They'll want to see proof that you're current on your installment agreement and that you’ve made consistent payments for a certain period, typically three to six months. This demonstrates to the lender that you are actively addressing your tax obligations and are financially responsible. It's all about showing a clear path to resolution.

What about tax liens? These can be a bit more complicated, as a tax lien gives the government a legal claim to your property. If you have an active tax lien, lenders will scrutinize it closely. Often, they'll require the lien to be paid off before closing on a new home, or at the very least, they'll need to see a robust payment plan in place that has been consistently honored for a significant period. Again, the key is demonstrating a commitment to resolving the debt.

As a top realtor in McKinney who's helped countless first time home buyers and seasoned investors navigate the market, I've seen a variety of financial situations. My role isn't just about finding you a great home; it's about guiding you through every step of the process, including financial readiness. I often advise clients to tackle tax issues head-on before seriously looking. Why? Because procrastination can definitely throw a wrench in your mortgage approval timeline, causing unnecessary stress and potential delays.

I recently worked with a client who had a few years of unfiled returns. We paused their home search, and I connected them with a trusted tax professional. Once everything was filed and an IRS payment plan was established, we were able to move forward successfully. It’s all about transparency and having a solid plan. Lenders appreciate honesty and a proactive approach to resolving financial obligations. This is where having an experienced partner like me, Brandon Scribner, really comes in handy. With my background as an Accredited Buyer Representative and expertise in areas like new construction homes, I understand the nuances of what lenders look for. I provide comprehensive Home Buying Assistance, making sure you’re prepared for every financial hurdle.

So, if you're dreaming of owning a home in Carrollton, TX, or anywhere in the Dallas-Fort Worth area, but have some tax questions lingering, don't let it stop you. Reach out to me! A quick Free Consultation can help us assess your unique situation, connect you with the right resources, and create a roadmap to homeownership. Let's get you on the path to finding your dream home. Your financial past doesn't have to dictate your home-owning future!