How to Write a Letter of Explanation to Mortgage Company
Writing a letter of explanation to a mortgage company can be a crucial step in securing a loan, especially if you have any discrepancies or gaps in your financial history. This letter provides an opportunity to clarify any issues that may have raised concerns with the lender. Here’s a guide on how to write an effective letter of explanation to mortgage company.
1. Start with a Formal Introduction
Begin your letter with a formal introduction, addressing the mortgage company and the specific loan officer handling your application. Clearly state the purpose of your letter, which is to provide an explanation for certain aspects of your financial history.
2. Be Concise and to the Point
Keep your letter concise and to the point. Avoid lengthy explanations or unnecessary details. Focus on the specific issues that need clarification and provide straightforward answers.
3. Address the Specific Issues
Identify the specific issues that require explanation. This could include late payments, gaps in employment, or any other discrepancies in your financial history. Clearly explain each issue and provide a logical and reasonable explanation for it.
4. Provide Supporting Documentation
If applicable, include any supporting documentation to strengthen your explanation. This could be pay stubs, bank statements, or any other relevant documents that prove your financial situation. Make sure to attach copies of these documents to your letter.
5. Be Honest and Transparent
Honesty is key when writing a letter of explanation. Be transparent about your financial situation and any challenges you may have faced. Avoid making false claims or trying to hide any information. Lenders appreciate honesty and transparency.
6. Use a Professional Tone
Maintain a professional tone throughout your letter. Avoid using slang or informal language. Use clear and concise sentences, and proofread your letter for any grammatical errors or typos.
7. Provide Contact Information
Include your contact information at the end of the letter, including your phone number and email address. This allows the mortgage company to reach out to you if they have any further questions or require additional information.
8. Sign and Date the Letter
Finally, sign and date the letter. This adds a personal touch and demonstrates your commitment to providing a clear explanation for the issues at hand.
By following these guidelines, you can write a compelling letter of explanation to a mortgage company that will help address any concerns and improve your chances of securing a loan. Remember to be honest, concise, and professional throughout the process.
