It happens to someone every year. They are attempting to secure a mortgage and realize that they don’t have their tax returns. They want to start the process quickly, but the IRS says is will take up to 75 days to send a copy.
If this happens to you, you don’t have to wait roughly two and a half months for a copy of your tax returns. Whether they were destroyed in a fire or simply misplaced over the past year, you can get copy of past tax returns by using one of these three convenient options…
How to Get Tax Return Information from the IRS Quickly
Option 1: Call the IRS for a Faxed Copy
One of the first steps you can take is to call the IRS for a copy to be faxed to you. Be ready, because this step takes a large amount of patience. Start by calling the IRS at 1-800-908-4490 and dialing *1. Hang on no matter what the recording says and eventually you will be put in touch with a real person. This can often take 20 minutes or longer, so like we said, be patient. (After you have pressed *1, don’t push any other buttons.) When you get in touch with a real person, tell them you need a copy of your tax returns faxed to you immediately. Remember, you are requesting the tax returns, not the tax transcript. Be prepared to answer any questions they have to verify your identity. Once this is complete, they will fax a copy to you right away. Depending on your specific situation, you can have the copy faxed to our office for greater convenience.
Option 2: Go to Your Local IRS Office
The next option is to visit your local IRS office for a copy of your tax return documents. While you can simply go to the office, it is best to call ahead and make an appointment. By scheduling an appointment, they should be ready for you and your visit will probably be much smoother. When you arrive, ask for a copy of your tax return with all schedules. Again, it is important that you get a tax return and not the tax transcript.
Option 2: Use Filelate.com
This is a private business and you will have to pay for their services, but it is usually fast and easy so if you are in desperate need of your tax returns this may be a good solution. Simply visit the website filelate.com and signup for their service by entering the information they request. Then click on the “Missing Forms” tab at the top right of the homepage. You’ll then be directed to a screen that lets you select the forms you need to recover, which includes the 1040, 1099, and W-2 forms. Simply select the right form. select yourself or your spouse, and submit your order. According to their site, they have employees available 24 hours a day, so recovering your form should be fairly easy.
Why Do You Need Tax Returns?
All this begs an important question: why we even need tax returns in the first place? Why go to all this trouble to simply get a document with a few number on it? Because the tax return document is one of the most important documents used by lenders to verify your income. Without it, getting approved for a home loan can be much more difficult.
Lenders are always concerned about the amount of money you earn, as this has an obvious impact on the amount you can pay back on a monthly basis. Lenders want to make sure you have the financial capacity to repay the mortgage loan, and this capacity is directly tied to your annual income. Of course, they won’t just take your word for it, they need to verify your income, which means they need documents like your tax returns.
Before the economic crisis that started in 2008, lenders were often using “stated income,” which basically meant anyone could just say they earned X-amount of dollars and a loan would be approved. Loans made with stated income were also known as “liar loans,” which gives you an idea of how accurate they were. In today’s economic climate, it seems almost shocking that these loans existed.
Today, mortgage lenders have to take much more precaution before approving a loan. They will need to look at many documents, including the bank statements to verify your income. In many cases, they prefer to have the document sent directly from the IRS, so you will need to sign an IRS Form 4506-T, which gives the lender permission to contact the IRS for a copy of your tax returns.
The need for a tax return is also tied to new rules and regulations that went in effect around 2014. These new rules set stricter standards for income verification, and they are made to prevent the types of reckless lending that was so present before 2008. These rules are often called “ability-to-repay” rules, and they require the lender to make a reasonable effort to verify the income of the potential borrower.
Other Documents for Income Verification
While the bank statement is an important document for verifying your income, there are other documents that you will need to bring as well.
One of the most essential documents is a statement of your assets. These documents should verify your financial and property holdings that are of value, which can provide greater reassurance to lenders. They can come in the form of bank statements, retirement accounts, real estate, and auto titles.
You should also bring a list of your current debts, verification of any earnings outside your regular income (side job or alimony, for example) and other paper work that will help lenders get a clear picture of your income.
Caring Support for Your Mortgage Needs
If you want advice on how to get approved for an affordable mortgage, contact San Diego Purchase Loans today!
We use a common-sense approach to mortgage approval, and we will be proud to help you find a wonderful home that makes you happy for years to come!
“Chad Baker is THE BEST, most professional, understanding, HONEST person I’ve ever worked in the mortgage industry. He knows exactly what he’s talking about, will never promise something he can’t deliver, and will bend over backwards to get you what you need. I had a very unique problem qualifying and every other mortgage company I worked with assured me from the beginning that they could get me financed, and then it would all fall apart once we hit underwriting. Chad understood my circumstance from the beginning and patiently explained every step of the way. I can’t thank you enough Chad! Juliann has been great keeping me updated and making sure that everything comes together in a timely fashion. She also appreciates my sense of humor, which gives personality to a boring funding process. Thanks Juliann! I HIGHLY recommend Home Point and if I ever buy another home, will absolutely use them again.”
EXCEPTIONAL, SUPER EXCEPTIONAL! The most professional, accountable and committed mortgage service we have ever worked with. With numerous experiences in buying and refinancing homes, by far Chad Baker and his team remain at the top of our list. We feel very blessed to have located such a committed company who serve their clients with an exceptional first “first class” mindset.
“We’re loving our new place and we’re very pleased with how smoothly everything went through closing. Thanks for keeping us up to date on the possibility of refinancing at a lower rate; we trust your judgement as far as waiting until the rate is around 5% lower before we refinance. We’re very interested in pursuing that if rates drop to that level. Thanks so much for all your help and personal attention!”