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My mortgage was transferred before my first payment was due on a new home. Will I get a 1098 from the first mortgage lender? I already got one from second lender.

I have my closing statement so I have the origination fee amounts and prepaid interest and taxes, but was wondering if I will still get a 1098 from first lender if I never made a payment to them.

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Employee Tax Expert

My mortgage was transferred before my first payment was due on a new home. Will I get a 1098 from the first mortgage lender? I already got one from second lender.

No, you will not receive a 1098 from the 1st lender if no payment was collected by them. That's what a 1098 reports-collected interest received from a payment. 

It is common for new loans to be sold to another lender immediately, as some lenders don't want to carry the note themselves.

Other Items on closing disclosure form that may be deductible:

  • interest paid at the time of purchase (the charge at closing would normally be done for interest up to the date of first payment). 
  • real estate taxes charged to you. 
  • points - On a refinance they need to be amortized over the life of the loan; unless the points were used to improve your main home.

Other fees, such as commissions, attorney fees, preparation of deed, abstract fees, owner title insurance, recording fees are added to the basis of your home, and not deductible.

https://www.irs.gov/pub/irs-pdf/p936.pdf

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Employee Tax Expert

My mortgage was transferred before my first payment was due on a new home. Will I get a 1098 from the first mortgage lender? I already got one from second lender.

No, you will not receive a 1098 from the 1st lender if no payment was collected by them. That's what a 1098 reports-collected interest received from a payment. 

It is common for new loans to be sold to another lender immediately, as some lenders don't want to carry the note themselves.

Other Items on closing disclosure form that may be deductible:

  • interest paid at the time of purchase (the charge at closing would normally be done for interest up to the date of first payment). 
  • real estate taxes charged to you. 
  • points - On a refinance they need to be amortized over the life of the loan; unless the points were used to improve your main home.

Other fees, such as commissions, attorney fees, preparation of deed, abstract fees, owner title insurance, recording fees are added to the basis of your home, and not deductible.

https://www.irs.gov/pub/irs-pdf/p936.pdf

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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Level 2

My mortgage was transferred before my first payment was due on a new home. Will I get a 1098 from the first mortgage lender? I already got one from second lender.

So, where do I enter the points in TurboTx I paid in the exact scenario above?  I did get the 1098 from the second lender (the one that picked up the loan nearly immediately after closing).  It wasn't on that second lender 1098 obviously.  Thanks!!