W-9 & 4506T Forms

I have a question about the (W-9) & (4506T) forms. Can somebody give me a little insight on these? What are these used for and is there anything to pay special attention too reguarding this paperwork?

You must be applying for a loan.

Lender’s use the W9 to verify your SSN.

The 4506T may be used to verify your taxable income. Some loan packages are selected for audit by the lender’s internal quality assurance and compliance group. This group may use the 4506 to request transcripts of a prior year tax return to verify income items you reported on your loan application.

if lender asks for 4506T but does not fill it out according to the form instructions, am I required to sign it.

what did they fill out incorrectly? There is not that much info on the form. ???

That is just it; they essentially gave me a blank form, when the form instructs taxpayers not to sign it if lines 6 & 7 are not filled in.

The W-9 is to report the interest you pay on your home. It is what generates the 1098 at the end of the year that says you paid xxxx amount in mortgage interest.

The 4506 is required by most lenders. Any loan that required your tax returns requires a 4506 be signed at closing so that in the event the loan gets audited then the lender can request original tax returns that you filed for previous years. They do that so that they can match them up with the tax returns in the file.
Believe it or not…some lenders have changed the numbers on tax returns to help someone qualify…even when the buyer does not know it!
FYI the 4506 is only good for 60 days after you sign it. It is not a blanket authorization to get your tax returns anytime they want.
Hope this helps.

Thanks, Ramona, that helps a lot! However, I was not required to submit tax returns, only curent check stubs.

Do you fill out lines 6 and 7 before you send 4506T to the borrower?

On line number 6 the auditor would put the tax number that they are requesting. ie… if you were required to submit your full tax returns when you did your application then they would require form number 1040. Which are your federal tax returns.
Number 9 you would fill in the years that you submitted. So if the lender was asking for your latest two years then you would fill in. 2003 and 2004.
The 4506T is usually used by an individual when they do not have the original tax returns that they submitted to the irs. It really means a Transcript or photo copy of your originals. When you sign a 4506 at closing it is not the same form it just says 4506.