1040 - Personal Income Tax Return
The definition of mortgage term: Personal Income Tax Return
Form 1040 is the standard personal federal income tax return form. It outlines income, deductions and credits for calculating federal income tax purposes. It is used in income documentation loan files to ensure that the borrower can meet the loan obligations. This form, along with other income proving documents (W2, 1099's, etc) work together to paint the overall income related picture for an underwriter.
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