According to the current rules, a mortgage lender cannot approve a loan without verifying a customer’s tax information, received after submitting the form 4506-T. Any discrepancies with the filing can cause a delay for the lender and eventually for the borrower, which is not a desirable situation for both.
There have been issues with incorrectly filled forms, but sometimes even correctly filled 4506-T forms can cause delays. Processing glitches occur when the IRS is backed up and have not been able to catch up with all the paperwork. To avoid any such problems, it is advisable that all borrowers make sure that their taxes are filed and that their tax information is current with the IRS.
In case there are issues with the filing, it is recommended to approach the local Taxpayer Advocate Service (TAS) office, which is known to expedite the process considerably, provide accurate dates for the receipt of transcripts. They can be of great help in speeding up the loan process too.
The TAS can help by :
1. Resolving your tax problems that have not been looked into by the IRS.
2. Helping individuals and businesses who have financial difficulty due to the delayed tax processing.
3. Listening to you and understanding your problems; helping you navigate through the IRS maze, among other services.
Please keep in mind that it is easier when you have your filings up-to-date and ready before applying for a loan