If you are looking for a mortgage loan, it is likely that you will need to provide a letter of explanation employment to your lender. This document explains your employment situation and helps the lender understand your ability to make regular mortgage payments. In this article, we will provide you with seven examples of letter of explanation employment for mortgage sample that you can use as a basis for your own letter.
A letter of explanation employment for mortgage sample is a document that you will need to provide to your lender. This letter explains your employment situation, including your job history, income, and other relevant information. It can help the lender determine whether you are a good candidate for a mortgage loan. Below are examples of letter of explanation employment for mortgage sample that you can use as a guide.
When writing a letter of explanation employment for mortgage sample, it is important to keep it simple and to the point. Include only the information that the lender needs to know. You can find examples of letter of explanation employment for mortgage sample online and edit them as needed for your particular situation.
Examples of Letter of Explanation Employment for Mortgage Sample
Job Loss
Greeting: Dear Sir/Madam,
Body: I am writing to explain the gap in my employment history. I lost my job due to the pandemic and was unemployed for six months. During that time, I was actively looking for work and attending job interviews. I am currently working as a full-time employee with a stable income. I hope this explanation clears up any concerns you may have about my employment history.
Complimentary Close: Sincerely, [Your Name]
Self-Employed Income
Greeting: Dear Loan Officer,
Body: I am writing to explain my self-employment income. As a self-employed individual, my income can vary from month to month. However, over the past three years, my business has been profitable and my income has been stable. I have included my tax returns, bank statements, and other financial documentation to support my application. Thank you for considering my mortgage application.
Complimentary Close: Best regards, [Your Name]
Job Change
Greeting: Dear Mortgage Lender,
Body: I am writing to explain my recent job change. I recently left my previous job to pursue a better opportunity at a different company. Although I have only been at my new job for a few months, I have a stable income and expect to continue in this position for the foreseeable future. Thank you for considering my mortgage application.
Complimentary Close: Respectfully, [Your Name]
Temporary Employment
Greeting: Dear Underwriter,
Body: I am writing to explain my temporary employment. I worked for a staffing agency for six months while I was looking for a permanent job. Although this was a temporary position, I had a steady income and was able to save money for a down payment on a house. I am currently employed full-time and have a stable income. Thank you for considering my mortgage application.
Complimentary Close: Sincerely, [Your Name]
Commissions and Bonuses
Greeting: Dear Loan Processor,
Body: I am writing to explain my commissions and bonuses. I work in sales and my income includes commissions and bonuses in addition to my base salary. Although these amounts can vary from month to month, I have a history of earning consistent income over the past several years. I have included documentation of my commissions and bonuses to support my mortgage application. Thank you for your consideration.
Complimentary Close: Best regards, [Your Name]
Returning to Work
Greeting: Dear Mortgage Underwriter,
Body: I am writing to explain my recent return to work. I took a break from work to care for a family member who was ill. Although I was not employed during that time, I have since returned to work and have a stable income. I have included documentation of my employment history and other financial documentation to support my mortgage application. Thank you for your consideration.
Complimentary Close: Respectfully, [Your Name]
Part-Time Employment
Greeting: Dear Mortgage Officer,
Body: I am writing to explain my part-time employment. Although I work part-time, I have a stable income and have been employed with the same company for several years. I have included documentation of my employment history and other financial documentation to support my mortgage application. Thank you for considering my application.
Complimentary Close: Sincerely, [Your Name]
Tips for Writing a Letter of Explanation Employment for Mortgage Sample
Provide Relevant Information
When writing your letter of explanation employment for mortgage sample, make sure to include all relevant information about your employment situation. This includes your job history, income, and any other details that may be relevant to the lender.
Keep it Simple
Your letter of explanation employment for mortgage sample should be clear and concise. Avoid using technical jargon or complex language that may be difficult for the lender to understand.
Include Supporting Documentation
To support your application, include documentation of your employment history, income, and other relevant information. This may include tax returns, bank statements, and other financial documentation.
Be Honest
Be honest about your employment situation and provide accurate information to the lender. This will help build trust and increase the likelihood of your mortgage application being approved.
Proofread
Make sure to proofread your letter of explanation employment for mortgage sample for spelling and grammar errors. A well-written letter will make a good impression on the lender and increase the likelihood of your application being approved.
Seek Professional Help
If you are unsure how to write a letter of explanation employment for mortgage sample, seek the help of a professional. A mortgage broker or loan officer can provide guidance and assistance in preparing your application.
Frequently Asked Questions
What is a letter of explanation for employment?
A letter of explanation for employment is a document that explains your employment situation to a lender. It may include information about your job history, income, and other relevant details.
Why do I need a letter of explanation for employment?
A letter of explanation for employment is often required by lenders to help them understand your ability to make regular mortgage payments. It provides information about your employment situation, which can be used to assess your creditworthiness.
What should I include in my letter of explanation for employment?
Your letter of explanation for employment should include your job history, income, and any other relevant details about your employment situation. It should be clear and concise, and include supporting documentation as needed.
How long should my letter of explanation for employment be?
Your letter of explanation for employment should be long enough to provide all relevant information about your employment situation, but not so long as to be overwhelming or difficult to read. Aim for 40 to 50 sentences.
Can I use a template for my letter of explanation for employment?
Yes, you can use a template for your letter of explanation for employment. However, be sure to edit the template to include all relevant information about your particular employment situation.
Should I seek professional help when writing my letter of explanation for employment?
If you are unsure how to write a letter of explanation for employment, it may be helpful to seek the help of a professional. A mortgage broker or loan officer can provide guidance and assistance in preparing your application.
Conclusion
A letter of explanation employment for mortgage sample is an important document that can help you get approved for a mortgage loan. By following the tips and examples provided in this article, you can create a clear and concise letter that addresses your employment situation and increases your chances of getting approved for a mortgage loan.