Why is my mortgage lender asking me for a profit & loss statement?

Businesses can change quite a bit over a 12 month period. Even if 2010 and 2011 looked OK, we're already a year past that and it's reasonably prudent for an underwriter to check your year-to-date operations to make sure no significant downturn has occurred, especially if this is your main source of income. This becomes especially important if your general field of business is experiencing any type of strain attributable to the overall economy. These days, most businesses are struggling a bit.

Try not to take it personally - they're asking everyone for a lot more documentation than people used to be required to provide just a couple of years ago. And it's not just this lender - all lenders are making borrowers jump through hoops now. If it's worth it for you to refinance, just put together the P&L and move forward with it. Hope that helps.

This relies on motives akin to down cost, type of employment, credit score score, even sort of property you might be borrowing towards. Mostly just one 12 months w-2, often 2 years, commonly 1 or 2 years of full tax return, signed and dated. (Some people can restrict all that by means of going "acknowledged income" for a slight fee or slightly bigger interest price if they're financially robust adequate). To drag your credit report, they are going to want name, tackle, date of start, and social protection quantity. Any errors or problems on the report might need your clarification or further necessities. You're going to typically must prove some belongings, notably liquid assets like financial savings, checking, 401k, ira, mutual cash, money market fund, etc. By way of statements. In this day and age you have got to prove your identity for the patriot act primarily, also. Even with all that, the underwriters can still demand stuff you under no circumstances heard of or anticipated.

There are lots of mortgage fraud therefore they need the additional documentation to archive and see you qualify

You do not need to do the math I would just sent a letter stating what is in the last two 2 Profit and Lost statement it should be sufficient.

She wants your P&L because the loan underwriters will want to see your situation for fiscal 2012. We are nearly at the end of fiscal 2012 anyway, and you will need your P&L to file your taxes for 2012 soon anyway. No biggie. If you want the refi loan, then you provide what is requested.

After the financial crash and mortgage meltdown, lenders tightened their underwriting standards.

Your tax returns do not provide sufficient information for them to evaluate your income stability.

I'm not completely convinced about this

B/c they want to see it.