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

Posted: 22-08-2010 | Author: admin | Category: Personal Finance


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

Category: Personal Finance by admin

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

  1. pagodaboy2001, on August 23rd, 2010 at 1:08 pm Said:

    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.

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