W2 Transcripts Only
Understanding the W-2 Transcript
This is an IRS document that details your wages and tax withholding for any job that you have held the past few years. The transcripts report how much money you have earned as an employee and how much taxes you paid to the IRS through the withholdings. The transcript will show this information regardless of the type of job you have held: hourly, salary or monthly.
The purpose is to prevent any fraud by matching the income that is shown on the documents that you have submitted to the information shown on the documents. These documents act as proof of income for the said period.
The lender receives the application and uses the information on the transcript for underwriting your mortgage. This is the information we need to process your loan successfully.
Does it Apply to All Loans?
You can use the information to apply for conventional, FHA and VA loans. As you can see, these are the loan types you are more likely to use when financing a home.
You have to apply for this document from the IRS, whereby you will need to fill out form 4506 and wait for processing. Make sure you apply early because it takes some time to be processed.