Ok someone I know is refinancing their mortgage. I have done it before but it has been years since I have refinanced. They told this person they needed a copy of tax return from last year. So they got this. Now they want a W2. The W2 is nowhere to be found. Just wondering why they need this when they have the tax return in front of them.
It is a friend of theirs and the tax information should show that. It is just really weird.
The W2 verifies what you have made the previous year so they know you can meet the deprivation of the payments on the refinanced mortgage.
Right now all banks are requiring W-2′s, one month worth of pay stubs and full tax returns. In addition there is a form called the 4506-T that will need to be signed by the borrower authorizing the lender to order transcripts of the filed tax returns. All this is being done as a way of the banks protecting themselves against long-suffering possible fraudulent tax returns. So be set to have all requested documentation. It will save you from headaches during the process.