Posted on: 01st Nov, 2006 12:53 pm
while I apply for a mortgage I have heard from some of my friends that I will also have to sign a for, what they called will be a 4506 form of irs. what it is about and is it necessary for me to sign?
This form (IRS Form 4506) allows a lender to compare the details you put in your application for the mortgage with the details present in your tax return. The lender gets the authorization to get the copy of the tax return directly from the IRS.
Thanks
Thanks
This form is used by lenders for verifying your income and tax information when you apply for a loan. It allows the lender to compare what was mentioned to the IRS as income and specified to the lender.
With the IRS Form 4506 they can obtain a copy of your tax return and compare it with the information you supply in the mortgage application
With the IRS Form 4506 they can obtain a copy of your tax return and compare it with the information you supply in the mortgage application
Hi Jeff,
As per IRS, the consumer should sign and also put the date on the form. The date is quite important as this IRS form 4506 has a validity period of only 60 days within which the lender can obtain your tax return information.
However, if you do not specify the date at the time of signing of the form, then it allows the lender to access your tax returns also after the 60 day period which you should not agree to and specifically provide the date at the time of signing.
Thanks
Colin
As per IRS, the consumer should sign and also put the date on the form. The date is quite important as this IRS form 4506 has a validity period of only 60 days within which the lender can obtain your tax return information.
However, if you do not specify the date at the time of signing of the form, then it allows the lender to access your tax returns also after the 60 day period which you should not agree to and specifically provide the date at the time of signing.
Thanks
Colin
Hi,
The lender uses the income and tax data to verify what the borrower is telling about his income and whether it is a false claim that he is earning so much every month.
Another thing is that the person signing such a form should also mention that he is authorizing the specific number of year to be checked as for example two years of tax and income information should be checked, which lenders normally check at the time of a loan application.
Also if the person does not provide the date while signing the form then the lender gets to access the information for as long as four years which you should not be allowing.
James
The lender uses the income and tax data to verify what the borrower is telling about his income and whether it is a false claim that he is earning so much every month.
Another thing is that the person signing such a form should also mention that he is authorizing the specific number of year to be checked as for example two years of tax and income information should be checked, which lenders normally check at the time of a loan application.
Also if the person does not provide the date while signing the form then the lender gets to access the information for as long as four years which you should not be allowing.
James
Hi Jeffcott,
Generally, lenders ask a borrower to fill out an IRS Form 4506 along with other mortgage documents. This allows the lender to obtain copies of his tax returns from the Internal Revenue Service (IRS).
Lenders use this form as a means of preventing mortgage fraud. Prior to closing the loan, lenders will require self-employed borrowers to submit copies of the tax returns for the past 2 years. After the loan agreement is signed, the 4506 form will help the lender to obtain copies of the borrowers' returns from the IRS.
The lender then matches these tax returns with the copies provided with the loan package. If he finds that the figures do not match, then he can determine if the borrower may have submitted fraudulent tax returns to the lender.
Hope this information will help you. I am also providing a copy of the IRS 4506 Form. Hope that will give you a better idea.
Thanks,
Caron.
Generally, lenders ask a borrower to fill out an IRS Form 4506 along with other mortgage documents. This allows the lender to obtain copies of his tax returns from the Internal Revenue Service (IRS).
Lenders use this form as a means of preventing mortgage fraud. Prior to closing the loan, lenders will require self-employed borrowers to submit copies of the tax returns for the past 2 years. After the loan agreement is signed, the 4506 form will help the lender to obtain copies of the borrowers' returns from the IRS.
The lender then matches these tax returns with the copies provided with the loan package. If he finds that the figures do not match, then he can determine if the borrower may have submitted fraudulent tax returns to the lender.
Hope this information will help you. I am also providing a copy of the IRS 4506 Form. Hope that will give you a better idea.
Thanks,
Caron.
If you are concerned about the 4506 (due to tax concerns) you can consider one of the following other options
NINA Loan - No Income No Assett.
Your going to pay a higher rate but you wont have to worry about it
David Brown
"http://www.brown-lending.com"
NINA Loan - No Income No Assett.
Your going to pay a higher rate but you wont have to worry about it
David Brown
"http://www.brown-lending.com"
I need ti obtain a 4506T form
You can get the 4506T form from the given page:
http://www.irs.gov/pub/irs-pdf/f4506t.pdf
Take a look at it. I hope it'll help you.
http://www.irs.gov/pub/irs-pdf/f4506t.pdf
Take a look at it. I hope it'll help you.
income verification 2010
Hi derek,
Your query is not clear to me. Can you please explain what you actually wanted to say?
Thanks
Your query is not clear to me. Can you please explain what you actually wanted to say?
Thanks