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No, it's not a T-Rex, aka Tyrannosaurus Rex killing your mortgage loan. It's your 4506-T.
In the ever changing world of mortgages, you really need to stay on top of what is going on. So many think it's simple when pre-qualifying a borrower. But if you don't ask the right questions upfront and get very detailed, even the cleanest of deals could crash and burn.
So what is a 4506-t and what is its importance in the mortgage process? Basically it's a form used by lenders that allows them to request a transcript copy of your tax returns from the IRS. In the past, this form most times was used for those that were self-employed or to keep fraud in check. If a lender suspected something funny regarding your income, they could send this form to the IRS.
Your income is being examined very closely now by most lenders. No matter if you are self-employed or the lender/investor thinks there might be fraud involved, 4506-t's are being pulled on all borrowers. Now, I have heard some lenders brag that they aren't doing this, but is that true? I don't know, but I can tell you this, all the lenders that I know are doing this.
So I am a ... more
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