Writing a mortgage letter of explanation can be crucial in the home buying process, providing clarity on specific financial situations or discrepancies. This guide includes a template for a mortgage letter of explanation, an example, a variation, and key components and tips for writing effectively.
A mortgage letter of explanation is written to:
Clarify any uncertainties or discrepancies in a mortgage application.
Provide context to specific financial situations, such as gaps in employment, credit issues, or large deposits.
Assist lenders in understanding the borrower’s financial history and stability.
Personal Details: Include your name, address, and other contact information.
Lender’s Information: Address the letter to your mortgage lender or underwriter.
Explanation Subject: Clearly state what financial issue or discrepancy you are explaining.
Detailed Explanation: Offer a clear and concise explanation for the situation.
Supporting Documentation: Reference any attached documents that support your explanation.
Professional Closing: Conclude with a polite closing and your signature.
[Your Name] [Your Address] [City, State, Zip Code] [Email Address] [Phone Number] [Date] [Lender's Name or Mortgage Underwriter] [Lender's Company Name] [Company Address] [City, State, Zip Code] Dear [Lender's Name or 'To Whom It May Concern'], I am writing to provide an explanation regarding [mention the specific issue or discrepancy, such as a gap in employment, credit inquiry, or large deposit] as requested for my mortgage application. [Provide a detailed explanation of the situation. Be clear and concise, offering any relevant details that will help the lender understand the context. If applicable, reference any supporting documents attached.] I appreciate your attention to this matter and am happy to provide any additional information if needed. Thank you for your consideration during my mortgage application process. Sincerely, [Your Signature (if sending a hard copy)] [Your Printed Name]
John Doe 123 Main Street Anytown, AT 12345 johndoe@email.com (555) 678-1234 April 1, 2024 Jane Smith Mortgage Underwriter ABC Mortgage Company 456 Finance Way Anytown, AT 12345 Dear Ms. Smith, I am writing to provide an explanation regarding the recent large deposit of $10,000 into my account, as requested for my mortgage application. This deposit was a gift from my parents to assist with the down payment on my new home. I have attached a gift letter from my parents, along with a copy of the check and my bank statement showing the deposit. I appreciate your attention to this matter and am happy to provide any additional information if needed. Thank you for your consideration during my mortgage application process. Sincerely, John Doe
[Your Name] [Your Address] [City, State, Zip Code] [Email Address] [Phone Number] [Date] [Lender's Name or Mortgage Underwriter] [Lender's Company Name] [Company Address] [City, State, Zip Code] Hello [Lender's Name or 'To Whom It May Concern'], I am reaching out to clarify [mention the issue, such as a discrepancy in income or an unusual bank transaction] that was flagged in my mortgage application. The reason for [describe the situation briefly and clearly]. I have included [mention any supporting documents] to corroborate my explanation. Thank you for reviewing this information. Please let me know if there are any further questions or documents required. Best regards, [Your Signature (if sending a hard copy)] [Your Printed Name]
