I am wanting to start the mortgage process beginning of March 2017. I am trying to get my taxes done early enough so that my tax transcripts for 2016 will be available by then. However, it looks like I owe more than expected. I could pay them now, or I could setup an installment plan with the IRS. I owe $ 6,600 to fed and $ 950 to state. I have 40k in savings I was using for the home buying process. Should I dip into that and pay the taxes now, or get an installment plan set up that I can pay monthly and not dip into that 40k. Also, are there any other downsides to getting a mortgage approval while having an installement plan for taxes? I couldn’t find too many recent (within the last year or two) posts about this.
Any advise/help would be appreciated. Thanks!