Quote:
Originally Posted by RickFLM4
On the one that closed, we signed April 24. They didn't need an appraisal and it was technically a cash out because we rolled a HELOC balance into it. I gave them 2019 and 2018 tax returns plus a P&L for 2020 and YTD 2021 (2020 taxes still not filed - fuck gotta get those done this weekend), along with business bank statements. A few questions and requests for information, but overall very little inquiry on the primary residence, although it did take them about 6 weeks to finish the data gathering and analysis.
I got the rule change talk on the second home, where I was also told second homes and condos are tougher (which is true). Provided same data to them, but also needed to put together an analysis of revenue trends and reconcile my P&L to bank statements because they couldn't figure it out. Also needed to fill out some form to describe my business, how I find new customers, expenses incurred, etc. They got hung up on low expenses and seemed to not understand that a CPA does not have cost of goods sold. Wasted a bunch of time on that one that didn't end up closing.
The other issue I had, more on secondary than primary, is they seemed to have problems getting information from third parties, like existing lenders. This should be routine work so not sure what was wrong.
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LOL, you had to explain to the bank why a CPA doesn't have COGS???
I went though something similar with our bank. I have an LLC that is literally just a holding company to park a small ownership grant I was given by my employer. It's an LLC on paper with a bank account. They wanted P&L, balance sheet, assets, debts, etc. Sheesh. I gave them the K1 and they they still insisted on a P&L. So I took the topline income on the K1, added a "misc. charges and expenses" line that subtracted out and magically arrived at the bottom line income on the K1. Some underwriting sloth just needed to check a "P&L Received" box and had no concern over what was on it or how I arrived at it.