applying for a home loan and they want to see a profit and loss statement?

Imtheprez


im self employed and everything looks good for the loan its just they want to see a profit-loss statement from last year..Ive never had to do one of these…should it match my taxes, or be more, less? I just need this home loan

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Tags: Home Loan, Profit And Loss

This entry was posted on Monday, January 5th, 2009 at 10:44 am and is filed under Business tips. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

One Response to “applying for a home loan and they want to see a profit and loss statement?”

1. pagodaboy2001 Says:
   January 7th, 2009 at 11:41 pm

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   Your net income will be less. The P&L (profit loss statement) will have all expenses throughout the month, quarter, or year and not all expenses are deductible.

   The P&L should contain your gross income (from operation, interest earned etc) less operating expenses (this will give you your gross margin), less sg&a (sales, general and admin costs and this will give you EBIT – earnings before income tax).

   You may be asked to prove your numbers are correct. If they want to check your income they may ask to see the invoices and a bank statement with deposits of the payments for the invoices.