Permitting versus DIY for refinancing

[Thomas Key]

We have a rental property with an unfinished basement and are planning to finish it to make it a livable area adding a full bath and bed. We are debating using a contractor that does permits versus one that doesn’t. If we pulled the permits ourselves would it be okay to avoid conflict from city officials if we went with the person that doesn’t pull permits? Secondly, if we refinanced the property and did zero permits and avoided any city officials finding out would the bank recognize the new livable space? This is all hypothetical because are unsure the risk reward and would like an honest opinion. We have two licensed contractor giving a quote and a handyman that was referred. Thanks BP community!