W-2 as verification.....

[jaxstraw]

How do any lenders check on the W-2 that you submit as proof of income ??? Are they allowed to contact the IRS directly ?

Message Edited by jaxstraw on 04-18-2008 06:02 PM

[nicemann]

Most of the time when you buy a house they will

[MattH]

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@jaxstraw wrote:
How do any lenders check on the W-2 that you submit as proof of income ??? Are they allowed to contact the IRS directly ?

Message Edited by jaxstraw on 04-18-2008 06:02 PM

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They cannot check with IRS directly, but some will request your authorization to check with your employer. The only time I ever had a lender check my income with my employers was when I applied for a mortgage, I never had to do this with car loans. If the lender does require income verification with your employers then you will need to ask the HR department at your company how such matters are handled. I work for a big company with a centralized system for this purpose.

[Anonymous]

Yes, most medium-sized to large firms have a number that outside entities can call to verify employment.

[MattH]

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@Anonymous wrote:
Yes, most medium-sized to large firms have a number that outside entities can call to verify employment.

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At my company, I got several single-use PIN numbers from our HR department, and they said I was to give ONE of them to anybody I was authorizing to check my pay and hire date. In order to protect my privacy the lender had to get a number from me and each number would only work once.

[jaxstraw]

So it's my understanding from your response that what they do is use your W-2 as a 'quote' and then call your employer to match up the figures.
They do not get in touch with the IRS directly or any agency/company that can access your records from the IRSand report back to the lender.

Jax

[MattH]

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@jaxstraw wrote:
So it's my understanding from your response that what they do is use your W-2 as a 'quote' and then call your employer to match up the figures.
They do not get in touch with the IRS directly or any agency/company that can access your records from the IRSand report back to the lender.

Jax

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Exactly, and most employers will require your authorization before they will reveal
such information to outside parties.