Ronald Regan – Trust Everyone, Verify Everything
Author: Evan Vanderwey
Website: http://www.lansingmimortgage.com/ronald-regan-trust-everyone…
IRS Transcripts.
One of the less commonly used tools in the past is becoming almost a requirement for loan approvals in today’s lending environment.
In 2003 it was common for a borrower with a good credit score (700) not to have to provide ANY documentation to support the income they “said” they made.
Almost no one (even then) agreed that was a good idea for lending. And as pendulums do, this one has swung – I think this is a good thing, if you’re prepared.
When we file our taxes today, most of us will “e-file” which means we will get our refund prior to the IRS even reviewing our submission.
When applying for a mortgage using 2009 tax return information as I did for a borrower this month, that became a little bit stressful.
Mortgage underwriters are unable (for self-employed borrowers) to use the borrower 1040 return as the only source of income verification. A copy of transcripts from the IRS is also needed. The reason for this is simple. Unlike a W2ed…
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