"Letter of Explanation for Mortgage Template"

What Is a Letter of Explanation for Mortgage?

A Letter of Explanation for Mortgage is a written statement prepared by the borrower and sent to a potential lender to provide clarification on certain issues or answer questions that have been omitted in the mortgage application or during a personal interview. You may download a Letter of Explanation for Mortgage template through the link below.

Alternate Name:

  • Mortgage Explanation Letter.

Whether you have changed your physical or mailing address without notifying the other party or the lender discovered an employment gap or a late payment pattern in your credit reports, you can prepare a note that discloses your past and present situation. A properly composed explanation sent on time enhances your chances to obtain a mortgage and strengthens your relationship with the lender.

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How to Write a Letter of Explanation for Mortgage?

Follow these steps to create a Letter of Explanation for Mortgage:

  1. Greet the recipient (preferably, by name) and write down your own name. State the reason for sending a letter - refer to the mortgage you have been negotiating together and to the lender's request for more details.
  2. Answer the questions you have been asked. Be concise, honest, and avoid ambiguities. If you could not work or failed to pay your credit card bill, briefly tell the letter recipient what happened and certify your words by hospital bills, eyewitness statements, and receipts that prove your point.
  3. Attach financial documents if the lender needs to review and analyze your current finances. You may enclose tax returns, pay stubs, bank, and financial statements.
  4. Add your contact information and offer the lender to reach out to you if they have other concerns or find other issues. Sign and date the document. You can write an email or send the letter using traditional mail.

Why Do Underwriters Ask for Letters of Explanation?

Underwriters ask for a Letter of Explanation for clarification of the necessary document packet needed for mortgage approval. A lender's goal is to engage in a contract that will be paid. All employment and financial facts will serve as a safety net to receive regular and timely mortgage payments. It is a request for communication that leads to mutual satisfaction in regard to the desired agreement.


Related Letter Templates:

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To:​ _________________________
Lending Company’s Name
____________________________
____________________________
____________________________
Lending Company’s Address
____________________________
Date
Re:​ ______________________________________
Applicant’s Name, Loan Application Number
To Whom It May Concern,
I’m writing this letter to provide the requested explanation regarding my mortgage.
Explain the issue, including specific details, such as names, dates, monetary amounts,
account numbers and any other clarification which is requested. ​ A ny evidence that
pertains to your situation (pay stubs, documentation, etc.) should be attached to the letter.
Thank you for considering my situation. If more information is required please contact
me by phone at _______________________, or by email at _______________________.
Phone Number
Email Address
Sincerely,
____________________________
____________________________
Applicant’s Name
____________________________
____________________________
____________________________
Applicant’s Address
Applicant’s Signature
To:​ _________________________
Lending Company’s Name
____________________________
____________________________
____________________________
Lending Company’s Address
____________________________
Date
Re:​ ______________________________________
Applicant’s Name, Loan Application Number
To Whom It May Concern,
I’m writing this letter to provide the requested explanation regarding my mortgage.
Explain the issue, including specific details, such as names, dates, monetary amounts,
account numbers and any other clarification which is requested. ​ A ny evidence that
pertains to your situation (pay stubs, documentation, etc.) should be attached to the letter.
Thank you for considering my situation. If more information is required please contact
me by phone at _______________________, or by email at _______________________.
Phone Number
Email Address
Sincerely,
____________________________
____________________________
Applicant’s Name
____________________________
____________________________
____________________________
Applicant’s Address
Applicant’s Signature