Ask someone to proofread your letter for clarity, grammar and spelling. Even if the address variation is intentional, it is important to communicate it so that the reader can get rid of the confusion. An AKA letter is a commonly required piece of documentation during the lending process. In general, institutes that find the error often contact the customer and asks him to write a letter of explanation. 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. Make sure your letter of explanation includes: The key to writing a great letter of explanation is to keep it short, simple and informative. On the other hand, my address on my mortgage documents is Dolphin High Street, Norma Alley San Diego CA 98000. letter of explanation for address variation, explanation address discrepancy letter pdf, Diagnostic Imaging Procedure Request Form. The purpose of this letter is to explain my felony conviction, and offer you reassurance that I will be an asset to your organization. "While staying truthful, provide details that will help you prove your side of the story and get your loan approved," he says. Get the form you require in the library of legal templates. Collection accounts can still remain on your credit report for up to seven years, even when they're paid off. However, there were some places where there was still a need to change it. Get your online template and fill it in using progressive features. For example, perhaps you moved to an apartment while house shopping, werent sure how long youd be renting and applied using your parents address. There may be someone out there that is willing to work with you. services, For Small The variation of address is genuine, and both the addresses are valid. USLegal fulfills industry-leading security and compliance standards. Address Discrepancy Letter is a letter of explanation where the borrower clarifies the current residential address and responds to any discrepancy in the address stated in credit report or other documents. "The letter of explanation is the underwriter's way of showing that an item needs further explanation," Windham says. I have listed some of my paystubs below for reference. One or more paragraphs that provide information the lender asked for. Keep the letter formal and succinct. Explain how and when the situation was resolved. Re. The key to writing a great letter of explanation is to keep it short, simple and informative. (function() { It gives you an opportunity to share additional details that could sway approval. Complete the necessary boxes that are marked in yellow. When writing an address variation credit explanation letter, it is important to be honest and specific . Typically, mortgage lenders will request a letter of explanation when they want to know more about your income, employment or credit. services, For Small It could be that everything on your loan application looks good, except for this one thing you need to explain. Underwriters scrutinize how stable your income is, and big increases or decreases in your income could result in a letter of explanation request. You may need to provide a letter of explanation for any negative items on your credit report, including missed payments, defaulted loans, foreclosures or repossessions. Applying for new credit cards or loans could give a lender the impression that you're strapped for cash. On April 15, 2020, I was laid off from my job due to the COVID-19 pandemic. You can directly state the letter from the main thing you wanted to communicate. Depending on what it finds in your bank statements or credit report, additional documentation may be necessary. If you are in the need to write this letter and you dont know how to write it, you can follow the tips given below: Subject: Letter of explanation for address variation. Heres what youll need to include: a subject line with your name and application number; your current mailing address and phone number; outline all of the facts that the lender asked you for; attach supporting documents such as bank statements, financial documents, and tax returns. Our platform gives you a wide variety of forms that are available for filling out online. I have received a show-cause notification on 18 th June 20XX, according to which I am asked to explain the variation of address at two different places. Thank you. But, there are some places where I still need to change it. Complete the necessary boxes that are marked in yellow. It must also include the address of the farm thats tied to the income or loss since the underwriter cannot get this information from your tax documents. I hope that you have understood the entire situation and find no problem in bringing modifications to the letter. LETTER OF EXPLANATION FOR ADDITIONAL ADDRESS(ES) ON CREDIT v.11.10.16. The exact content will vary based on your situation, but heres a general letter template you can use as a guide. Subject: Letter of explanation for Express Entry-FSW application (Application no.) If youve experienced a significant gap between jobs and subsequently failed to meet a financial obligation, you can explain the situation and why it wont happen again. Guarantees that a business meets BBB accreditation standards in the US and Canada. , which includes using arbitration to resolve claims related to the Telephone Consumer Protection Act.! I started living in San Francisco permanently and bought the house in 2019. Click the arrow with the inscription Next to move on from one field to another. 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). The main reason? Use the following checklist as your explanation letter format: There are a few guidelines that apply to writing a consumer explanation letter, regardless of the situation. The letter doesn't fully clarify the issue your lender is asking about. Late payments, collections and major derogatory credit problems like foreclosures or bankruptcies almost always require a letter of explanation. Explain what happened in as much detail as possible. The information the underwriter sees doesn't always tell your entire financial story. From now on comfortably get through it from your home or at your office from your mobile device or personal computer. Your credit report may be cause for concern if it shows overdraft fees, considerable cash withdrawals or some other unexplained financial irregularity. Your mortgage loan officer or a loan processor who prepares your application for underwriting, can provide you with a copy of that request. Please enter a minimum of three characters. I was not able to change the address on the document I submitted to your bank therefore it made my details look ambiguous. Be polite, but not overly friendly, and dont use emotional language. Sign and date it And provide necessary documentation to backup the letter Check out the sample below This four-step process can ease you from dry land to open waters. I am still working at the same company today and, since July 1, 2020, I have not been late on, nor missed, any payment on this credit card account. Wear OS by Google and Google Play are trademarks of Google LLC. Defaulting on your student loans comes with steep consequences, so consider options to prevent it from happening. Get approved to see what you qualify for. There is no hard and fast rule as to when you should write this explanation letter. When you apply with an address that differs from the one at the credit bureaus, the lenders view ID theft as a distinct possibility. If you have experienced any of the examples above, you may want to prepare a letter of explanation now to ensure a smooth process. Similarly, underwriters cant ask any questions about your health if youre receiving Social Security Disability Income. I hold receiver a show-cause notification on 18 thickness June 20XX, according to which I am asked in explain the mod of address at couple different seat. Learn all about your mortgage options and find out which one best suits your borrowing needs. Providing additional documentation with your letter can be helpful. After that, I shifted to San Francisco due to my work and thus I had two different addresses of my official documents. Send the letter in a timely manner to keep your mortgage application on track. Mention the reason for having the variation in the address. Because of. The letter is a formal way for the person to apologize for the inconvenience caused and explain why this happened. A letter of explanation (LOE or LOX) is a letter you draft in response to a mortgage lender's request to explain ambiguous or derogatory information in your credit history, income background, or other application documentation. If you need to write one, be sure to ask your loan officer what exactly the underwriter wants to see, and whether you need to provide any supporting documentation along with the letter. This letter of explanation is in regards to a variation in the net pay on my paychecks. Here's what you should know. You dont need to worry if your lender requests a letter of explanation. Enclosed is a copy of my statements from July 1, 2020 until now as proof of my good standing and on-time payments with this account. When a lender asks for a letter of explanation, theres no need to panic more than likely the lender just needs your help to clear up, in writing, something about your credit, earnings or assets. USLegal fulfills industry-leading security and compliance standards. If you have an income or loss from a farm property listed on Schedule F of your income tax returns, you must produce a letter of explanation that states the farm is not on the property youre buying. Get up to 2% cash back on every purchase. An example would be that you sold a car to someone and then deposited the check they wrote you. 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. to your inbox. How do you write a letter of address discrepancy? In some cases, the additional information will be enough to sway the underwriter. List of Other Addresses: List of all other addresses that have been reported as current addresses. I also apologize for any inconvenience or trouble brought by my address discrepancy. This will also create some distance between the timing of your application and your previous credit problems. You can use it as a template when you write your own letter. Why do I need to write a letter of explanation? When a problem is found in a document, it often causes a pause in an underwriting. For example, if hospitalization was the culprit behind some missed payments on your credit report, it may be helpful to include hospital bills. If this occurs in a document, a letter of explanation for address discrepancy can be submitted. Avoid including irrelevant information or answers to questions the underwriter didnt ask. & Estates, Corporate - Negative items on your credit report can set off red flags for underwriters who might assume you have difficulty paying your bills. However, you want to make sure you write this letter correctly, as it could be crucial to your mortgage approval. Standard mortgage forms often dont leave space for you to explain any unusual or problematic components of your application. Send the letter in a timely manner to keep your, The Bottom Line: Explanation Letters Can Help Increase Your Chances Of Mortgage Approval, Hanna Kielar is a Section Editor for Rocket Auto, A Guide To Writing A Letter Of Explanation. 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. Attorney, Terms of Get the Address discrepancy letter pdf completed. Contents of the Address Discrepancy Letter Loan Information: Borrower(s) name, loan number, and date. 9280 ADELPHI RD, ANTHILL, MO 65488 08/96 - 04/10 XP-B Explanation: Uncheck to remove section INQUIRIES (LAST . USLegal received the following as compared to 9 other form sites. Lots of reasons may have caused this decline in income, including having a baby, getting divorced, advancing your education, traveling or starting your own business. The Federal Housing Administration (for. Mortgage companies use finance professionals called underwriters to oversee underwriting. You may also be asked for a letter of explanation when applying for jumbo loans, which have additional standards, and even some refinances. Rocket Mortgage received the highest score in the J.D. What is a letter of explanation for previous address? Paying Cash for a House : Reimbursement via the Delayed Financing Cash Out Refinance, HUD Home: Find & Buy a House for Pennies on the Dollar, Current Mortgage Interest Rates | April 2023, Mortgage Relief | Mortgage Stimulus Program 2023, How to Make a Down Payment for a Second Home. Whenever you find out that you have left a discrepancy in the financial document you submitted to the bank, you can write an explanation letter explaining the whole thing. , 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. For example, if you were hospitalized and in turn defaulted on payments to creditors, you should include the hospital bills. LLC, Internet To fill out an envelope for military addresses, follow these steps: 1. In other cases, the underwriter just needs additional assurance that you can afford the loan before they approve it. if (window.ClickTable) { Therefore, I am writing the explanation letter in response to that letter. In your letter spell out the cause and let the underwriter know that youll still be able to make your mortgage payments. Theres a good chance that the next time you hear from your lender, it will be to let you know youre fully approved. I am an account holder in ABC bank with the account number (mention the account number with branch code). Red Flags Rule, Project No. When applying for a mortgage, be prepared to explain credit hiccups. Any supporting documents that provide identification and back up your claims (copies of bills of sale, title transfers, marriage licenses, etc. Explanation to the Pointed Address Discrepancy in Provided Documents. According to the Consumer Financial Protection Bureau, 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. I was asked to write a letter of explanation to the bank for the mentioned address variation. Access the most extensive library of templates available. If the underwriter rejects your letter of explanation, its not necessarily the end of the line. Enjoy smart fillable fields and interactivity. I received a letter from OPUS California in which the authorities asked me to show the cause behind address variation on my National Identity Card and my documents submitted for the mortgage. There may be different types of situations wherein someone would ask you for such a letter. Get access to thousands of forms. var options = {"display_percent":"","instance_v2":"5cb4ef89ea4aae7421d684e8","instance":""}; A letter of explanation is a written, signed and dated document you prepare to address questions a mortgage lender may have about your loan application. Home Buying - 7-minute read, Andrew Dehan - March 01, 2023. It takes only a couple of minutes. It can be tricky to sort through closing costs, so we broke down what they are, how much they cost, whos responsible and how to minimize your expenses. Make sure your letter of explanation includes: The current date (the day you write the letter) The name of your lender Your lender's complete mailing address and phone number A subject line that begins with "RE:" and includes your name, application number or other identifying information A letter of explanation may provide the extra documentation needed to: Youll need a letter of explanation if an underwriter doesnt understand information on your mortgage application, or needs additional details to make a final decision about approving your loan. 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. Planning, Wills You may be asked for a letter of explanation during the application process. For more, you can contact me at +1-[X] or email me at [EMAIL]. Based on the information you have provided, you are eligible to continue your home loan process online with Rocket Mortgage. You may qualify for a no-interest plan to save on that sparkler. Take note of the exact accounts or . Get access to thousands of forms. Explanation: 003. Youll need a gift letter that explains how youre related to anyone giving you money toward your down payment, closing costs or mortgage reserves. Lenders need to know you have no trouble managing your finances. Theft, Personal This can range from a gap in your employment, to a gift you received from your. 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. Shekhar says it's possible that you may be able to preempt having to write a letter of explanation by sharing any potentially problematic financial circumstances with your lender at the outset. A letter of explanation is your chance to answer any questions a lender might have about your loan application. 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 If youre self-employed with complicated tax returns, you might even need to request a letter from your tax professional to help the lender understand how youre paid. For example, perhaps you moved to an apartment while house shopping, werent sure how long youd be renting and applied using your parents address. 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. Introducing the all-new LendingTree Win Card. Rocket Mortgage, 1050 Woodward Ave., Detroit, MI 48226-1906. 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. A cosigned student loan, car loan or mortgage will require an explanation and possibly proof that you dont make the payments. Address of this sender. 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. Download the completed form to your device by clicking. If youve changed careers, a lender may ask you to explain if youve received any training or experience before the switch to make sure your earnings prospects are steady. Choose the fillable fields and add the necessary info. Because of this, the lender may require explanations to confirm the losses arent likely to continue. 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. Edit Address discrepancy letter pdf. Both Shekhar and Windham say yes, it's possible that a lender might review your letter of explanation and reject it. If you were able to continue meeting your financial obligations during this time, include that information, too. My Account, Forms in They will not know which address to use and will be confused about why a discrepancy is present. If a sign-in page does not automatically pop up in a new tab, click here. Heres a sample letter of explanation. Forms, Real Estate Start here (May 1st, 2023). (Click the image to open a PDF version.). 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. A letter of explanation is not necessarily a bad thing. The other address i.e. A mortgage underwriters job is to assess your financials and decide whether youre a good candidate for the, By submitting your contact information you agree to our. You can show the institute that you are sorry for the mistake you made. Read our article to find out what questions you should ask when it comes to choosing the right lender for your needs. If there is anything that you want to ask me, you can contact me at (give your phone number). You may write the letter when you find out that there is a discrepancy present in the document you have submitted. NMLS #3030. How do I write a letter of explanation for an underwriter? When this happens, a customer can write an explanation letter to explain the discrepancy. The name affidavit may include maiden name, married name, other names used, and all variations of the names that appear in other documents. #1 Internet-trusted security seal. The content In other cases, you may just need to provide additional explanation. My former address i.e., address (i) is my current station and I have been living here since 2019. Use the explanation letter sample below as a guide for your LOE: https://www.lendingtree.com/content/uploads/2020/02/Mortgage-letter-of-explanation-template.pdf. Late payment to ABC Bank (car loan) dated 12/2018, Late rent payment to my landlord (Joe Smith) dated 12/2018, For example, if you were hospitalized and in turn defaulted on payments to creditors, you should include the hospital bills. I received a letter from the bank asking me to explain why there is an address discrepancy in my statement. 1- The letter purports to explain the variation of my postal address at two different places. Double-check the form for misprints as well as other errors. Letters of explanation are a common part of the mortgage application process. Remember to be honest, formal, and concise when writing a letter of explanation for your mortgage lender. And this guide will tell you how to do it. Large deposits or withdrawals in your bank account, An address discrepancy on your credit report, Late payments on credit cards or other debts. Letter of Explanation Template Include a basic heading and salutation A short explanation to resolve the confusion (short and sweet!) Copyright 2015-2018 All rights reserved. The name and address on your credit report don't match the name and address you've provided on your mortgage application. entities, such as banks, credit card issuers or travel companies. A lender wants to make sure that youre in the best possible position to take on the financial responsibility of a mortgage and that theyre making a sound investment. Read through the whole document to ensure that you have not skipped anything. For example, you may need to write a letter of explanation if you have unusual or sudden activity in your credit report or banking statements. If the underwriter doesnt recognize the source of a large deposit into your bank account, theyll ask you to explain why its there and where it originated. 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. App Store is a service mark of Apple Inc. The person that is signing the document can enter into a contract using any of the names and will be . The person can communicate this professionally so that the reader will not face any confusion and so that there is no hindrance in procedures. In 1998 I was convicted of drug distribution and served five years in federal prison. Underwriters look at how youve managed credit in the past to determine if youll be able to afford a new loan. Reader question: "We have been asked to write a letter of explanation for our mortgage lender's underwriter, regarding a bank overdraft fee.They were unable to provide a sample or template for a mortgage letter of explanation, but they did say to keep it simple. Title: Master Book of Reference Items - 20180502.xlsm Not knowing the exact time frame I would be living in an apartment, I changed my mailing address to my mother's address at (input address) so that I would receive all mail. The underwriter may want more information about any negative items on your credit report, such as a foreclosure. After you finish writing the letter, edit for typos or grammatical errors. Heres everything you need to know so you can hit a home run with your letter of explanation. , the underwriter cant contact your doctor directly. Do underwriters accept letters of explanation? Wondering about pursuing a bad credit home loan? PDF Address Discrepancy Letter - Mortgages Analyzed - The other address can be explained as follows: 1. USLegal received the following as compared to 9 other form sites. An LOX can necessary when there is inconsistent, incomplete, or unclear information on a loan application. Pay all of your bills on time each month. Name Affidavit is a document in which a person certifies all the names that have been used by the person. Choose the fillable fields and add the necessary info.