topic 4506-T - Mortgage application in Mortgage Loans

4506-T - Mortgage application

Anonymous — Tue, 20 Nov 2018 23:51:26 GMT

I have an accepted offer on a condo, and i was filling out a mortgage application when I came to the 4506-T form, and realized they wanted my tax return from 2016 & 2017. I was due refunds both years, but never paper mailed the 2016 return, becuase I just figured I would do it this year - within the 3 years, and owed a refund, no penalty right? I think I am wrong. Will this cause me to fail to meet the requirements for the 4506-T form? I am going to call my local taxpayer advocate tomorrow and see if I can get this processed ASAP - I was just completely blind to the process.. What do you think is going to happen? I havent signed the authorization to pull a 4506-T yet, because I am terrified. All else is good, good job, low DTI ratio, pleanty of $$ in the bank, no bad credit impact, all debts paid on time, etc.

Any help, guidance or reassurance would be wonderful.

Thanks,

Re: 4506-T - Mortgage application

kc0039 — Wed, 21 Nov 2018 01:06:03 GMT

What kind of loan? If conventional, we might not even need it, but just in case the investor pulls your file for QC, they will use the 4506-T to pull tax returns. That's all

Re: 4506-T - Mortgage application

Anonymous — Wed, 21 Nov 2018 01:24:46 GMT

Hi kc0039, thank you for responding to me. Yes, it is a conventional loan. Can you explain what the QC means? If I file the return tomorrow, and it takes 4-6 weeks to process, would I be covered if needed for QC? Thank you, R

Re: 4506-T - Mortgage application

kc0039 — Wed, 21 Nov 2018 01:28:26 GMT

QC means quality control. 10% of the files originated and closed goes through QC from the lender. 10% of the QC'ed files that was sent to the investor get QC'ed by the investor's QC employee. I suggest sending your tax returns in to file and be done with it.

Re: 4506-T - Mortgage application

Anonymous — Wed, 21 Nov 2018 01:32:31 GMT

Thank you, I agree, I have all lined up and will send for overnight delivery tomorrow. You have set my mind at ease. I appreciate your time answering my questions.

Best, R

Re: 4506-T - Mortgage application

JVille — Wed, 21 Nov 2018 04:19:20 GMT

File that missing return ASAP. While many lenders don’t really need those returns depending on the type of loan you are getting. IN PRACTICE, they pretty much ALL pull them and will tell you it’s a requirement. You need to get the returns filed because it actually takes time to get them into the system in order to pull them with the 4506.

Re: 4506-T - Mortgage application

homeloanexpert — Wed, 21 Nov 2018 13:15:17 GMT

I get inquiries from folks with the same circumstances as you at least on a weekly basis and especially around tax season. Having to turn in your 1040's Federal Income Tax Returns is lender specific. Not all lenders require them nor the validation of them. Others require them filed and validated by the IRS via a 4506-T. Circling back around, as an example, my company does not require 1040s unless you are currently self-employed. Other than that, I don't even ask for 1040s anymore. In fact, even if you are a W2 Wage Earner, we don't require a signed 4506-T anymore. The process has become so automated and streamlined, that we simply require 30 days paystubs, 2 years W2's, and a VOE (verification of employment) from your HR/Payroll Dept. As I always counsel future homebuyers, choose your Lender and LO wisely. It could greatly effect the prospect of getting your home loan approved and closed.

Best wishes to you!

Re: 4506-T - Mortgage application

stellar — Wed, 21 Nov 2018 19:48:20 GMT

quote:

As I always counsel future homebuyers, choose your Lender and LO wisely. It could greatly effect the prospect of getting your home loan approved and closed.

I appreciate this sentiment and advice. However I find it very vague. What entails "wisely"? What specific things would a person be looking for? What questions should you ask? How can you tell a good Lender/LO from the bad ones? Where do you even start looking?

Re: 4506-T - Mortgage application

JVille — Wed, 21 Nov 2018 20:03:07 GMT

There are a couple of ways to pick both a Lender and a Realtor. The best way is thru word of mouth. Your neighbor, co-worker, family member who has purchased a home recently will share their Good or Bad experience. Word of mouth!

If you have found your Realtor first they always have their favorite Lenders. Why you might ask, realtors love lenders for the following reasons, they get the deal closed, they communicate well, tell the truth and if there is a problem let the parties know ASAP. Realtors (smart ones) won’t recommend an incompetent Lender. So if your RE Agent has a couple of names they love then make an appt and see it you feel comfortable with one of them. You need to be educated about your options and visiting with a couple different lenders is a good way to start.

The. Cost of the loan from lender to lender should be very close. Very few of the hard costs are controlled by the lender. The Lender is simply the one required by law to disclose every cost involved. So don’t get mad a the messenger

Re: 4506-T - Mortgage application

kc0039 — Wed, 21 Nov 2018 20:02:45 GMT

@stellar wrote:
quote:

As I always counsel future homebuyers, choose your Lender and LO wisely. It could greatly effect the prospect of getting your home loan approved and closed.

I appreciate this sentiment and advice. However I find it very vague. What entails "wisely"? What specific things would a person be looking for? What questions should you ask? How can you tell a good Lender/LO from the bad ones? Where do you even start looking?

If the LO is asking you questions, not just about your docs, but about you. Where do you see yourself in 3,5,7,10 years? How long do you plan or think you're going to stay in the home? What made you jump into wanting to own a home?

We're thorough with our questions. We do care how you can afford the home you want to buy. We want you to be able to pay for the home you live in. Also, we WANT you to be able to LIVE, not survive, but LIVE instead of just paying for a mortgage payment and other bills and just staying at home. You're the one in charge of your budget, we're the ones saying you can/can't do it.

Yes, we pay our bills doing this, but we also care. The ones that don't care are the ones that just ask you how much you want to buy and give me your docs. Kind of sad really.