Create Your Personal Income Statement for Mortgage Financing

Having an up-to-date copy of your personal income statement on hand will be a big asset in organizing your finances. It will show you, in black and white, where all of your hard-earned income is being spent. This single aspect is vital for getting your finances under control. And, once your finances are under control, your overall state of well being will also improve.

A great way to organize your finances is with Quicken Software. Quicken Personal Finance Software helps you manage your spending, savings, investments and assets.

In addition to getting your personal finances organized, an income statement will also help you to get approved for mortgage financing. In this regard, your income statement is a necessary requirement for purchasing rental property.

The Basics of an Income Statement

So, what are the basic elements of an income statement? There are three main components - the income section, the expense section, and the income minus expense section. That last section is also commonly referred to as the "bottom-line". It shows if there is a deficit or surplus (just like the Federal budget) of income after all the bills have been paid.

An income statement can be made on a weekly, monthly, quarterly, or yearly basis. For the purpose of getting approved for a mortgage on rental property, the lender (more than likely) will request an updated monthly income statement.

For detailed examples of how to create your own income statement, please visit The Landlord's Library book collection. It contains all the high-value, practical information you'll need to maximize your success as a residential landlord.

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