topic Re: 4506-C request in Mortgage Loans

4506-C request

micvite — Fri, 14 Jan 2022 18:53:33 GMT

The builders lender is asking for a 4506-c from me as part of my disclosures, I guess I've gotten to that point in time where I don't really feel comfortable releasing all of my tax info lol, does anyone know if that's standard practice across all banks or if that's just their personal choice (DHI mortgage). I am self employed if that makes any difference.

Re: 4506-C request

dragontears — Fri, 14 Jan 2022 20:25:22 GMT

@micvite wrote:
The builders lender is asking for a 4506-c from me as part of my disclosures, I guess I've gotten to that point in time where I don't really feel comfortable releasing all of my tax info lol, does anyone know if that's standard practice across all banks or if that's just their personal choice (DHI mortgage). I am self employed if that makes any difference.

Every mortgage I have gotten required tax returns, especially after I started a side business (some lenders will not require them from strictly W2 employees).

As self employed you will have to submit tax returns, underwriting will not clear you for a regular mortgage without being able to validate your income and that your income is not decreasing.

You don't have pay stubs/W2 to verify income so how are you expecting the lender to validate what you say?

Re: 4506-C request

micvite — Fri, 14 Jan 2022 20:27:53 GMT

@dragontears wrote:
@micvite wrote:
The builders lender is asking for a 4506-c from me as part of my disclosures, I guess I've gotten to that point in time where I don't really feel comfortable releasing all of my tax info lol, does anyone know if that's standard practice across all banks or if that's just their personal choice (DHI mortgage). I am self employed if that makes any difference.
Every mortgage I have gotten required tax returns, especially after I started a side business (some lenders will not require them from strictly W2 employees).
As self employed you will have to submit tax returns, underwriting will not clear you for a regular mortgage without being able to validate your income and that your income is not decreasing.
You don't have pay stubs/W2 to verify income so how are you expecting the lender to validate what you say?

Ah I already submitted my schedule showing my income that I'm using to qualify as well as bank statements. Now they want the whole return which I didn't really want to do. I guess there's no way around it?

Re: 4506-C request

4sallypat — Sun, 16 Jan 2022 01:51:44 GMT

Yup, 4506-C merely means you are allowing access to your tax returns.

I had to submit one for my recent mortgage because I have a side business listed as a sole proprietor with business income & debt.

Mortgage broker said all looks good with my Schedule C which I file every year - guess they want to make sure your business is profitable...

Re: 4506-C request

Revelate — Sun, 16 Jan 2022 14:59:36 GMT

@micvite wrote:
@dragontears wrote:
@micvite wrote:
The builders lender is asking for a 4506-c from me as part of my disclosures, I guess I've gotten to that point in time where I don't really feel comfortable releasing all of my tax info lol, does anyone know if that's standard practice across all banks or if that's just their personal choice (DHI mortgage). I am self employed if that makes any difference.
Every mortgage I have gotten required tax returns, especially after I started a side business (some lenders will not require them from strictly W2 employees).
As self employed you will have to submit tax returns, underwriting will not clear you for a regular mortgage without being able to validate your income and that your income is not decreasing.
You don't have pay stubs/W2 to verify income so how are you expecting the lender to validate what you say?
Ah I already submitted my schedule showing my income that I'm using to qualify as well as bank statements. Now they want the whole return which I didn't really want to do. I guess there's no way around it?

I don't know anyone doing no-doc mortgages or even low-doc ones anymore unless some absurd amount down and a terrible rate.

There's so many laws and regulations protecting us the consumers in this case, sign the form and go on with life: tax returns being basically mandatory as a part of UW probably pre-date the credit reporting era even. Name, address, SSN, income, withholding, some possibly interesting stuff I guess from what deductions are claimed blah blah, nothing much end of the day (oh no I'm a student now the UW is going be skeered!); hell most of it for a large chunk of Americans is actually online and public information at least on the income side.

Your other option is to walk away from this lender, try to find someone else, and maybe wind up walking away from the mortgage altogether. That seems like a lot of hassle to be righteous on some privacy point when (in theory) you've told them what's on it already anyway accurate to the best of your knowledge.