If you are planning to apply for a mortgage, having an employment gap can be a potential obstacle in your application. However, you can explain the gap with an employment gap letter for mortgage sample. Here we will guide you on how to write the letter and provide you with examples to help you with your application.
An employment gap letter for mortgage is a written document that explains the period of time when you were not employed or had a significant reduction in your income. This letter will be submitted as part of your mortgage application to help lenders understand the reason behind your employment gap.
It is important to note that a gap in employment does not automatically disqualify you from getting a mortgage. However, it is crucial to provide a valid reason for the gap and show that you are currently financially stable.
Below are some examples of an employment gap letter for mortgage that you can use as a reference or edit as needed:
Medical Condition
Dear [Lender’s Name],
I am writing this letter to explain the employment gap in my mortgage application. From [start date] to [end date], I took a break from work due to a medical condition that required me to undergo surgery and a lengthy recovery process.
During this period, I was unable to work as I needed to prioritize my health and well-being. However, I am now fully recovered and able to work again. I have attached medical documents to support my claim.
Thank you for taking the time to consider my application. Please let me know if you have any further questions or require additional information.
Sincerely,
[Your Name]
Caregiving Duties
Dear [Lender’s Name],
I am writing this letter to explain the gap in my employment history. From [start date] to [end date], I took a break from work to provide full-time caregiving duties to my elderly parent.
During this period, I was unable to work as I needed to prioritize my parent’s health and well-being. However, I am now able to work again as I have made alternative care arrangements for my parent.
Thank you for taking the time to consider my application. If you require any further information or have any questions, please do not hesitate to contact me.
Best regards,
[Your Name]
Relocation
Dear [Lender’s Name],
I am writing this letter to explain the gap in my employment history. From [start date] to [end date], I relocated to a different state/country and had to take a break from work to adjust to my new environment.
During this period, I was unable to work as I was focused on settling down and finding a new job. However, I am now fully settled and have secured a new job that provides me with a stable income.
Thank you for your understanding. Please let me know if you require any further information or have any questions.
Sincerely,
[Your Name]
Further Education
Dear [Lender’s Name],
I am writing this letter to explain the gap in my employment history. From [start date] to [end date], I took a break from work to pursue further education in [subject].
During this period, I was unable to work as I needed to focus on my studies to achieve my academic goals. However, I have now completed my education and possess valuable skills that I believe will make me an asset to any employer.
Thank you for considering my application. Please do not hesitate to contact me if you have any questions or require further information.
Best regards,
[Your Name]
Personal Reasons
Dear [Lender’s Name],
I am writing this letter to explain the gap in my employment history. From [start date] to [end date], I took a break from work due to personal reasons that required my attention and focus.
During this period, I was unable to work as I needed to prioritize my personal well-being and family circumstances. However, I am now able to work again and have secured a new job that provides me with a stable income.
Thank you for taking the time to consider my application. Please do not hesitate to contact me if you have any questions or require further information.
Sincerely,
[Your Name]
Workforce Reduction
Dear [Lender’s Name],
I am writing this letter to explain the gap in my employment history. From [start date] to [end date], I was unfortunately part of a workforce reduction that resulted in the loss of my job.
During this period, I actively searched for new employment opportunities and participated in career development programs to enhance my skills. I am now fully employed and have a stable income.
Thank you for your consideration. Please let me know if you require any further information or have any questions.
Best regards,
[Your Name]
Tips for Writing an Employment Gap Letter for Mortgage Sample
If you are planning to write an employment gap letter for mortgage, the following tips can help you create an effective letter:
- Be honest and provide a clear explanation for your employment gap.
- Keep your letter concise and to the point. Avoid elaborating too much on your personal circumstances.
- Support your letter with documents or evidence that can verify your explanation.
- Highlight the skills or experiences you gained during your employment gap that can make you a valuable asset to any employer.
- Use a formal tone and structure when writing your letter.
Frequently Asked Questions
Q: Can an employment gap affect my mortgage application?
A: Yes, an employment gap can affect your mortgage application as it raises concerns about your financial stability and ability to make timely payments. However, a valid explanation for the gap and proof of current financial stability can help alleviate these concerns.
Q: What documents should I include with my employment gap letter for mortgage?
A: It depends on the reason for your employment gap. For example, if you were on medical leave, you can attach medical records to support your claim. If you were pursuing further education, you can include your academic records or certificates. It is best to provide documents that can verify your explanation.
Q: Can I still apply for a mortgage if I have a significant employment gap?
A: Yes, you can still apply for a mortgage even with an employment gap. However, it is important to provide a valid explanation for the gap and show that you are currently financially stable.
Q: How long can an employment gap be before it affects my mortgage application?
A: There is no set time limit for an employment gap that can affect your mortgage application. It depends on the lender’s policies and criteria. However, if you can provide a valid explanation for the gap and show that you are currently financially stable, it can improve your chances of getting approved.
Q: Should I mention my employment gap in my mortgage application?
A: Yes, it is important to mention your employment gap in your mortgage application to avoid any misrepresentations or potential issues in the future. The lender may ask for an employment gap letter to explain the gap, so it is best to be transparent about it.
Q: Can I use the same employment gap letter for different mortgage applications?
A: Yes, you can use the same employment gap letter for different mortgage applications. However, make sure to adjust the letter accordingly to fit the specific requirements of each lender.
Q: Can I hire a professional to write my employment gap letter for mortgage?
A: Yes, you can hire a professional to write your employment gap letter for mortgage. However, it is important to provide them with accurate and truthful information to avoid any misrepresentations.
Conclusion
Writing an employment gap letter for mortgage can be daunting, but it is a crucial part of your application. By following our tips and using the examples provided, you can create an effective letter that can help you explain your employment gap and increase your chances of getting approved for a mortgage.