IRS Form 4506-T, Request for Transcript of Tax Return, is used by many VA-approved lenders to help with the VA home loan underwriting process.
When a military member uses his or her VA home loan benefits, the U.S. Department of Veterans Affairs does not allow the veteran to be charged the following fees: * Attorney fees for the property seller or mortgage lender * Commissions for the real estate agent or broker * Fees for the buyer’s broker * Costs for property inspection on HUD-built homes * Lien penalties on homes for sale
The information in the transcript can assist a lender in determining whether a borrower has the ability to repay a VA-guaranteed loan. The IRS tax return transcript contains things like payment status, penalties paid or owed, assessments and adjustments after the return was filed. These items will tell VA-approved lenders how a potential borrower stands with the IRS.
When a potential VA borrower fills out IRS Form 4506-T, the VA-approved lender from whom he or she is seeking a loan can access the personal or business tax return transcripts indicated on the form for the current year and up to three prior years.
Any accompanying IRS forms like a W-2, 1099, 1098, and a 5498 that may have been attached with a return may also be viewed by the lender once a borrower submits a completed IRA Form 4506-T. Additionally, an IRS tax return transcript can tell a lender whether the borrower had a non-filing year.
How Do I Select The Best VA Lender? While there are many lenders approved, you will definitely want to work with a specialist specific to VA Home Loans. Choosing a lender or mortgage professional that doesn’t have the experience will prove to be time consuming and frustrating. Search for an approved VA Lender that has accolades and respect from their borrowers, public & industry.
Most VA borrowers are able to complete the bulk of what’s requested on the Form simply by following the accompanying instructions. The tax documents checklist, however, may require additional explanation. When a potential VA borrower checks boxes in this section of the Form, they give VA-approved lenders access to IRS status of payments, penalties, assessments and adjustments for the filed return indicated on the Form. Most VA lenders ask potential borrowers to “check all” so that they have all the tax information needed for underwriting.
VA Home Financing Summary If you have served your country then contact a VA Mortgage Professional and get started with your VA Home Loan. If you’re eligible you won’t find a better financing program available.
Harris Smith runs the home equity line of credit website. Don’t Miss Out!