Self Employed Profit and Loss Statement for Mortgage?

[Justin B.]

Just helping someone with this and since she's self employed and the bank asked her for a profit loss statement for her business, should she distinguish between accounts billable and accounts receivable, or should she just say total income? She does have some outstanding invoices that are thousands of dollars that should be paid any week or month now.

Appreciate any feedback!

[Shaun Weekes]

@Justin B.

When you're self-employed Fannie and Freddie really don't have any way of verifying YTD income so they ask for a profit and loss statement.

When I request this document I ask that it be very basic. Profits on one side and loses on the other and hopefully the total income YTD is the same or more than the previous year.

I don't know if this bank you're using wants something more detailed but my experience has been not to put too much into it.

I hope that this helps Sir.