The full explanation
According to Fannie Mae, each borrower whose income is used to qualify signs a separate 4506-C at or before closing, and the lender uses the transcript to check the income you reported. The form says not to sign it until all the lines that apply are filled in. If your income is from Puerto Rico, Fannie Mae requires a different form.
An example
At closing, the loan officer hands Raúl a Form 4506-C. Before signing, Raúl checks that the transcript type and the years the lender will request are already filled in.
You will see it in…
- The documents you sign when you apply for a mortgage or at closing
- Your IRS online account, where you can review and authorize the request
- Fannie Mae's Selling Guide, in the income verification rules
