Refinancing Profit and loss Statement

Question

I am refinancing a house and thought I will close last week of December, 2020.I met all requirements and has over $100,000 equity in the house, gave all initial required paper work. I have submitted the required two years of tax, including profit and loss for the two years 2018 and 2019. neither credit, income or bank account assets is a problem. The mortgage company(lender) called December 14, 2020, asking that I provide 2021 profit and loss because the loan will be closed in 2021 and my business may have been affected by Covid 19. The 2021 Profit and loss will be the third one since I have given them the 2018 and 2019 profit and loss. Why will I be required to give 2021 profit and loss that I have until April 15 to file by law? Can Lender deny refinancing if additional Profit and loss is not provided on time?

Pete B. · Answer

I am not really sure what the big deal is.  Yes they can ask you for a third profit and loss statement, and I suppose you mean 2020 profit and loss statement not a 2021.
Do you use an electronic accounting system?  If so providing these statements are a matter of a few mouse clicks, so there is very little effort in providing these statements including YTD versions of the reports.
It is also logical.  The year 2020 meant big changes for most people on earth and some businesses suffered greatly.  It is good due diligence for a loan underwriter to check your 2020 P&L.
If you were a W2 employee pay statements dating back to 2019 would not be sufficient.  You would need to provide recent pay stubs.
Why is this such an issue for you?

Refinancing Profit and loss Statement

One Answer

Add your own answers!

Ask a Question