It is not unusual for lenders to request recent W-2 forms to verify a potential borrower's income. This can be done even before a particular house is selected or a purchase agreement is signed, as part of the mortgage pre-qualification process. With regard to sellers requesting this information, you should ask them why. Perhaps they are using it to "screen" for suitable buyers. Consider consulting a real estate attorney if you still have concerns about their information requests. If you are concerned about identity theft and the potential for misuse of your personal data, take a pen or marker and make parts of your Social Security number and/or bank direct deposit information unreadable first before submitting a copy of your W-2 form. We would like your feedback on this Personal Finance Frequently Asked Question.

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