Self employed borrowers who apply for a Bank of America loan modification will need to complete and Profit and Loss to prove their income. It is important to know how to prepare this correctly so that the income shown will qualify you for a loan workout. Here are some important tips to help you prepare your P & L:
Do not mix up your personal expenses with your business expenses-the business finances are shown on your P & L. Your personal expenses are listed on the official RMA application form that you need to submit.
Your business bank deposits are used for your gross receipts-you will also need to provide these statements, at least 3 months but some investors require 6 months.
Itemize your business expenses-telephone, transportation, supplies, etc and deduct those from your Gross Receipts. What is left is your Net Business Income.
Net Business Income will them be the figure you use for your personal GROSS income for the application form.
You can find out ahead of time how much personal gross income you need to reflect on the application-this will help you on your Profit and Loss when you itemize your expenses. You may need to make some adjustments to increase or decrease your expenses so that you can arrive at the acceptable NET business income.
Confused about how to report your self employed income? Use the #1 selling resource for homeowners-The Complete Loan Modification Guide kit and Loan Mod Calculator provide you with your own specific income requirements. You also get a sample P & L, and the Calculator shows you where you need to make your adjustments to PASS all the approval triggers. Visit MyLoanModificationCenter.com today and get the help you need.