You can only deduct interest you actually paid. If you think the 1098 forms add up to the wrong amount, make a manual adjustment to the entry so it comes out correctly. If you don't know the correct amount, contact your lenders.
Also, you can only deduct interest on acquisition debt, not equity debt. That means you can deduct all the interest from lender 1 (assuming the whole loan was used to buy the home) but you can only deduct a portion of loan 2. For example, if loan 1 was $80,000 and you paid it off with loan 2 plus took out an extra $20,000 for bills, then your balance in loan 2 is $100,000 and only 80% of the interest is deductible. I am not familiar with how Turbotax calculates this, but you are responsible for your tax return, if you think the program is incorrect it is up to you to get the correct amount before you file.
You can only deduct property taxes actually paid to the tax authority (the city, county, school district, etc.). Money that you pay into escrow is still technically your money until it is paid to the tax authority.
