How do I write a letter of explanation for a mortgage underwriter?

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The key to writing a great letter of explanation is to keep it short, simple and informative. Be clear and write with as much detail as you can since someone else will need to understand your situation. Avoid including irrelevant information or answers to questions the underwriter didn’t ask.

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[su_posts posts_per_page=”1″ tax_term=”2703″ order=”desc” orderby=”rand”] Correspondingly, how do I write a letter of explanation for a mortgage?

Three words of advice for strong mortgage letters of explanation: simple, short, and informative. The purpose of this letter is to provide information needed to make a decision about your loan. Be clear, with as much detail as possible, such as dates, account numbers, transaction IDs, etc.

Also Know, what is a credit letter of explanation? A letter of explanation is your opportunity to explain to the lender in detail why there are negative marks on your credit. It’s designed to give the lender a better sense of your current financial situation as well as any past circumstances that caused damage to your credit score.

Correspondingly, how do I write a letter of explanation?

Explanation Letter – Sample Explanation Letter Writing Tips:

  1. A brief description should be provided with detail without glorifying the fact.
  2. Explain the step or the initiatives taken by you to make it correct.
  3. Emphasize your present situation with the fact.
  4. Explain the possible end of the situation or the problem.

Why do underwriters ask for letters of explanation?

Common issues that can cause the underwriter to ask for a letter of explanation include: changes in employment and/or income, large bank deposits and withdrawals, late payments, credit report discrepancies, and extenuating circumstances that might support the borrower’s cause.


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