When you apply for a mortgage, you’ll be asked for information by the lender. The mortgage company is taking a risk every time they loan money for a home purchase, and they need to ensure that they verify all the information that’s provided to them. While most people provide accurate and honest information on their applications, there are sometimes fraudsters.
The loan company will ask for a copy of your W-2’s or paystubs as well as a copy of your tax transcripts. The tax transcripts are from the Internal Revenue Service (IRS) and provide basic information about your income the previous year. The mortgage company will cross-check the information on the tax transcript with the other income information you provide them with.
In order to release a tax transcript to your mortgage company, you need to fill out form 4506-T. When you submit this form to the IRS, you’re giving them permission to send your private tax information to the underwriters at the mortgage company. The IRS will send the transcript directly to the lender, so there’s no question of its authenticity.
When you fill out the 4506-T form, enter your tax identification number or social security number and your name. In the address field, enter the mortgage company’s address so it’s mailed directly to them. Make sure you sign the 4506-T form before sending it, or the IRS will send it back to you. The IRS never releases any tax information without your signed consent unless required to by the law. The 4506-T form is the only form you need to request transcripts whether you file a 1040 or 1040EZ.