About Us | Terms & Conditions | Privacy Policy | Contact Us | Disclaimer, Letter of No Hate and Discrimination at Workplace, Excuse Letter for Missing a Day at the Office, Invitation Letter to Customers to Discuss New Machine, Memo by Administration for Mishandling of Customer, Email of Noncompliance with Company Policy, Warning Letter to Employee for Not Following Parking Rules, Letter to Staff Regarding Disruption in the Workplace, Application for Relaxation of Office Timings, Complaint Letter about Public School Service, Letter Requesting Partnership with an Organization, Home Renovation and Decoration Budget Worksheet, Thirty Days Notice to Employee to Return to Work, Proposal Letter to Supply Food to a Company. When applying for a mortgage, be prepared to explain credit hiccups. Explain what happened in as much detail as possible. Do underwriters accept letters of explanation? Follow these simple guidelines to get Address Discrepancy Letter Pdf completely ready for submitting: Get the form you require in the library of legal templates. , unless the SSA benefit letter specifically states that benefits will expire within three years of the loan origination, lenders must treat the benefits as likely to continue. Technically, the lender can ask anything about your financial situation. I was laid off from my job in November and unable to make my $550 car payment in December because of the drain on my finances. There are guidelines set by the secondary organizations that back or buy the loans, such as the U.S. Department of Agriculture, U.S. Department of Veterans Affairs, Federal Housing Administration, or Fannie Mae and Freddie Mac. It should also include an explanation of why you dont see this problem happening again. I also apologize for any inconvenience or trouble brought by my address discrepancy. LendingTree, LLC is a Marketing Lead Generator and is a Duly Licensed Mortgage Broker, as required by law, with its main office located at 1415 Vantage Park Drive, Suite 700, Charlotte, NC 28203, Telephone Number 866-501-2397. Look through the guidelines to determine which data you will need to give. I certify that I am one of the following: C (1) A student at a U.S. educational institution and hold the appropriate visa. Thank you. Negative items on your credit report can set off red flags for underwriters who might assume you have difficulty paying your bills. Specific documents will vary based on your situation. Such activity could include large deposits or withdrawals from your checking or other bank accounts or a decrease in your credit score from credit inquiries, overdrafts or late payments. Planning, Wills I shall be grateful if you use address (i) as my official postal address for the bank and remove the other address to avoid any inconvenience. When writing an address variation credit explanation letter, it is important to be honest and specific . However, there were some places where there was still a need to change it. })(); Get the latest housing market news and expert analysis delivered straight to your inbox. I am David Nelson and I hold a savings account in your bank i.e., Linux Hill Bank, San Francisco with account number 3241110021041. Lending services provided by Rocket Mortgage, LLC, a subsidiary of Rocket Companies, Inc. (NYSE: RKT). Both Shekhar and Windham say yes, it's possible that a lender might review your letter of explanation and reject it. App Store is a service mark of Apple Inc. You should immediately write the letter so that you can explain the situation and so that it does not negatively impact anything. Lenders may ask for proof your employer allows you to work remotely if youre moving to a different city or state from where your company is headquartered. In some cases, you may need to add financial documents to support your letter. Wondering how to choose a mortgage lender? on this page is accurate as of the posting date; however, some of our partner offers may have expired. Here's what you should know. Next, double-check with your lender on exactly what is being requested. Get approved to see what you qualify for. Home Loan Calculator Even if the address variation is intentional, it is important to communicate it so that the reader can get rid of the confusion. Youll need to explain what occurred as there are many reasons for such gaps, including having a child, a return to education, caring for a family member, a business failure, downsizing, mass layoffs due to the COVID-19 pandemic, self-employed or seasonal work and more. There may be someone out there that is willing to work with you. In some cases, the additional information will be enough to sway the underwriter. Heres a sample letter of explanation. Whatever you send in the way of documentation, always send copies and keep the originals. Pay all of your bills on time each month. Wondering about pursuing a bad credit home loan? Business, Open the document in the feature-rich online editing tool by hitting. I have received a show-cause notification on 18th June 20XX, according to which I am asked to explain the variation of address at two different places. Most loan programs require a two-year employment history without gaps between jobs. The following are examples of reasons you may be required to provide a letter of explanation. window.ClickTable.mount(options); I sincerely hope you will approve my credit application. A letter of explanation can also help if your employment gap was an anomaly. When youre asked to write a letter of explanation by a mortgage underwriter, look at this as a valuable opportunity to clearly communicate your situation. Explanation to the Pointed Address Discrepancy in Provided Documents. The main reason? USLegal has been awarded the TopTenREVIEWS Gold Award 9 years in a row as the most comprehensive and helpful online legal forms services on the market today. In case you need to change something, our online editor as well as its wide range of tools are ready for your use. Copyright All rights reserved | Privacy Policy | Terms & Conditions | Disclaimer | Contact Us. We use cookies to improve security, personalize the user experience, enhance our marketing activities (including cooperating with our marketing partners) and for other business use. You can directly state the letter from the main thing you wanted to communicate. This letter will explain the address variation that you have seen in my credit report: I have mentioned two different addresses on the document I submitted to the bank by mistake. Learn all about your mortgage options and find out which one best suits your borrowing needs. In other cases, you may just need to provide additional explanation. Due to this, a person is expected to explain the situation by writing a brief letter. Underwriters look at how youve managed credit in the past to determine if youll be able to afford a new loan. What is an explanation letter for a mortgage? If theres a difference between the addresses on your drivers license, loan application and credit report, the lender will ask for a letter to clear up the discrepancies. }) About Us | Terms & Conditions | Privacy Policy | Contact Us | Disclaimer, Letter of explanation for address variation, Letter of Explanation for Declining Income, Letter of No Hate and Discrimination at Workplace, Excuse Letter for Missing a Day at the Office, Invitation Letter to Customers to Discuss New Machine, Memo by Administration for Mishandling of Customer, Email of Noncompliance with Company Policy, Warning Letter to Employee for Not Following Parking Rules, Home Renovation and Decoration Budget Worksheet, Letter to Staff Regarding Disruption in the Workplace, Application for Relaxation of Office Timings, Complaint Letter about Public School Service, Thirty Days Notice to Employee to Return to Work, Proposal Letter to Supply Food to a Company. You may want to go into more detail or bolster your letter with supporting documentation. Ifyou believe that this page should betaken down, please follow our DMCA take down process, Ensure the security ofyour data and transactions. Youll also need proof of the new account balance and monthly payment if you open new credit that doesnt yet appear on your credit report. A letter of explanation consists of short descriptions you can use to fill in the gaps in your paperwork for your underwriter. I got a new job on June 20, 2020 and was able to make my July payment. The explanation letter is important as it explains why an error has occurred in any type of document concerning the address given. options.element = document.getElementById('click_table_64500da9b7d97'); Double-check the form for misprints as well as other errors. Therefore, there is an address variation in the official documents I submitted to the bank. By refinancing an existing loan, the total finance charges incurred may be higher over the life of the loan. The answer is, it depends. Current Address: The current residential address of the borrower. If you were able to continue meeting your financial obligations during this time, include that information, too. While there's no guarantee that you won't still need to provide a letter, you can give your loan officer a better sense of your ability to repay if you're upfront about past credit mistakes or financial challenges. An LOX can necessary when there is inconsistent, incomplete, or unclear information on a loan application. FTC: Comments should refer to ''The. Consider referencing these examples for guidance when writing your own letter: Formal example Here's an example of a formal explanation letter: Katie Patrick 12345 Brean Way Cincinnati, Ohio 42091 (010) 987-6543 katiepatrick@email.com June 3, 2021 Myles Moss 54322 Hillside Dr. Cleveland, Ohio 42190 (101) 345-789 mylesmoss@email.com A letter of explanation (sometimes called an LOE or LOW) is a document requested by mortgage lenders when they want more details about your financial situation. Effortlessly add and underline text, insert pictures, checkmarks, and symbols, drop new fillable fields, and rearrange or remove pages from your document. By filling in these and other gaps in your financial situation, you can increase your chances of getting approved for a mortgage and start hunting for your new home sooner. I received an email from the bank yesterday in which authorities had pointed out some address discrepancy at my end at the time of submission of the documents. Address Discrepancy Letter is a letter of explanation where the creditor clarifies the current residential address and respondents to any discount in the address stated in recognition account or other documents. In other cases, the underwriter just needs additional assurance that you can afford the loan before they approve it. Importance of a letter of explanation for address discrepancy My Account, Forms in A letter of explanation can allow you to clarify any complications, including glitches in your credit history or employment, to help you qualify for a home loan. in Professional Writing from Michigan State University. I have uploaded all the required documents on the CIC web portal. Ask someone to proofread your letter for clarity, grammar and spelling. What is a derogatory letter of explanation? If youve been living for free somewhere, for example at your parents home, youll need to prove that to your lender with a letter of explanation from the owner of the home, not you. Get access to thousands of forms. You can also get a note from your doctor further explaining what happened. There are a few reasons you or a third party may need to produce this letter depending on the lender youre working with and the type of loan youre getting. Because of HIPAA privacy laws, the underwriter cant contact your doctor directly. Plus, a higher credit score could lead to lower interest rates on your loan. Best Mortgage Lenders. Sometimes, there is a kind of error or ambiguity in our documents that causes so many problems for other people. Signature: Signature of the borrower. Lee Nelson is a Chicago-based writer whose work has appeared on Realtor.org, Yahoo! One or more paragraphs that provide information the lender asked for. I am writing this letter in response to this. Standard mortgage forms often dont leave space for you to explain any unusual or problematic components of your application. The institute may contact the customer and ask why there is a discrepancy in address. When it comes to mortgage letters of explanation, less is typically more. If you need to write an explanation letter in the home buying process, it is important to stick to the facts. For example, if hospitalization was the culprit behind some missed payments on your credit report, it may be helpful to include hospital bills. A letter of explanation may provide the extra documentation needed to: Clear up any discrepancies on your credit report, like late payments or cosigned loans Verify the dates of major credit issues like bankruptcies or foreclosures Help an underwriter understand how you earn money or why your income changed Get the latest housing market news and expert analysis delivered straight The key to writing a great letter of explanation is to keep it short, simple and informative. In 1998 I was convicted of drug distribution and served five years in federal prison. An AKA, or 'Also Known As' letter is one where the individual confirms a name variation has been used in the past. Along with that, some lenders, including Rocket Mortgage, do not finance farms. They will not know which address to use and will be confused about why a discrepancy is present. Make sure they also sign and date the letter. 1- The letter purports to explain the variation of my postal address at two different places. LLC, Internet There is no hard and fast rule as to when you should write this explanation letter. Keep the letter formal and succinct. Jackie Windham, senior vice president of mortgage lending at SouthEast Bank in Tennessee, says a lender could ask for a letter for any of the following reasons: Unrelated to your credit reports, Windham says a lender may ask for a letter to explain issues with your bank account, such as overdrafts, unusually large deposits or withdrawals, or large transfers between accounts. services, For Small An underwriter may request a letter of explanation if they run into questions about your finances during the mortgage approval process. I want the bank to use this address for any type of correspondence in the future. When this happens, a customer can write an explanation letter to explain the discrepancy. The person can communicate this professionally so that the reader will not face any confusion and so that there is no hindrance in procedures. to your inbox. The letter will explain why this address discrepancy has occurred. Editorial Note: The content of this article is based on the author's opinions and recommendations alone. If these bills were excessive because you didnt have medical insurance, youll need to send proof that you have it now. Underwriters scrutinize how stable your income is, and big increases or decreases in your income could result in a letter of explanation request. Federal regulations require that lenders prove they have verified your ability to repay the loans they make. I was asked to write a letter of explanation to the bank for the mentioned address variation. Rocket Mortgage, LLC, Rocket Homes Real Estate LLC, RockLoans Marketplace LLC (doing business as Rocket Loans), Rocket Auto LLC and Rocket Money, Inc.are separate operating subsidiaries of Rocket Companies, Inc. (NYSE: RKT). window.ClickTable.mount(options); You should also be prepared to write a letter to account for any inconsistencies in your work history, such as extended periods of unemployment or a total work history of less than two years. Be mindful of things like spelling, grammar, and punctuation. Be as detailed as possible and include dates, dollar amounts, account numbers, etc. I have moved to a new address and there are many documents where this change of address was needed.
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letter of explanation for address variation sample