Letters of explanation are a common part of the mortgage application process. By writing this letter, I intend to justify, explain, and validate the address variation. Since I have moved to a new city, there are lots of documents where the change of address was required. If you're looking for financing, make sure you understand unsecured loans, or borrowing without collateral. Contain your full name and address. The need to resolve mismatched documents has forced many New Mexico residents to file name-change petitions in court. ), Your full legal name as it appears on your mortgage application, signed and printed, Your spouse or partners name if theyre on the loan application with you, Your full mailing address and 10-digit phone number, After you finish writing the letter, edit for typos or grammatical errors. Parent PLUS loans are made to parents or guardians of students, not to the students themselves. Many of these guidelines dictate that the lender must get a mortgage letter of explanation for certain items on borrowers reports. Too much unnecessary information may lead to confusion, or at minimum, additional questions about your file questions that may have been avoided if it werent for some of the details in your letter. Sample letter: Name of the sender. Best Mortgage Lenders. Your letter should be: Dated. Make sure that you write the reason in such a way that it makes sense and the recipient understands the whole problem. By submitting your contact information you agree to ourTerms of Useand ourPrivacy Policy, which includes using arbitration to resolve claims related to the Telephone Consumer Protection Act.! If your credit report has any negative history, or if there is something in your mortgage application that requires more information, a lender may ask you to submit a "letter of explanation." When a problem is found in a document, it often causes a pause in an underwriting. Besides the payment history, balances and a list of accounts, there is more information. 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. If the situation involves a sensitive topic, then you may consider discussing it in person . You may need to provide a letter of explanation for any negative items on your credit report, including missed payments, defaulted loans, You Have Income Or Loss From A Farm Property, When it comes to determining the value of the home, another structure on the property cannot be the primary reason for that value. WTF? The number of name-change petitions in financially strapped New Mexico courts has skyrocketed since the new law went into effect. Sally Smith (and spouse name if joint application) When writing a mortgage letter of explanation, be as specific as possible and include actual dates and dollar amounts. There are various templates for explaining situations depending on the circumstance you want to clarify and provide additional information. If a lender still isn't willing to give you a home loan after you resubmit your letter of explanation, you might want to consider applying with another lender. In some cases, you may need to add financial documents to support your letter. Best Parent Student Loans: Parent PLUS and Private, remain on your credit report for up to seven years. After a few months, he applies for his first credit card and when doing so he lists his full name, Robert James Smith. In other cases, the underwriter just needs additional assurance that you can afford the loan before they approve it. My B.Tech Degree and all DMCs doesn't have my surname, ( only First Name ) 2. 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. Bob keeps the same last name and is consistent throughout. The term Roman script or Roman alphabet is the term used in United Kingdom for what is known in the United States as the Latin script or Latin alphabet. I was asked to write a letter of explanation to the bank for the mentioned address variation. / =!"#$% a D d > g bjbj$$ 8 F| F| W x x x x x 8 $ T $ L ! Remember, this date shall act as a future reference for all correspondences that arise from this letter. 2 Sample Letters Explaining Credit Inquiries. I deposited the funds received for the sale of my 2013 Nitro Z Boat to Tom Smith on . This can range from a gap in your employment, to a gift you received from your family, to a collection action in your credit report. Why Do I Need To Provide A Letter Of Explanation? Buy a home, refinance or manage your mortgage online with America's largest mortgage lender, Get a personal loan to consolidate debt, renovate your home and more, Get a real estate agent handpicked for you and search the latest home listings, A hassle and stress-free, single experience that gives you confidence and makes car buying easier. Remember that an explanation letter is ultimately a tool that helps demonstrate youre a qualified buyer. LendingTree does not include all lenders, savings products, or loan options available in the marketplace. The Letter C. For much of their history, the 'C' and 'G' evolved as the same letter. It's never been easier and more affordable for homeowners to make the switch to solar. The consumer explanation letter prints at the end of your credit report and has five different sections: derogatory accounts, public records, addresses, inquiries, and name variations. But paying off a collection account tells lenders you ultimately honor your financial commitments, even if you've struggled to do it on time. Common templates are mortgage, credit, deposit, and loan defaults. Letters of explanation are a common part of the mortgage application process. 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. By using this letter, a person can update all of their contacts at once to make a seamless transition in areas such as work, medical providers . And a lender may ask you to explain big swings in your income if your tax returns or pay stubs show some significant ups and downs. Pay all of your bills on time each month. / 0 M N O f g h . City, state, zip. This will work for many, but not all abbreviations (e.g. JavaScript is disabled. 5hD. If you have the name of a child or parent on your bank statements, lenders may ask you to explain who they are, and even ask them to provide a letter confirming you have access to all the funds in the account. Next, double-check with your lender on exactly what is being requested. Then write a clear, concise letter thats free of emotional language, negativity, or excessive detail. 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. Hanna Kielar is a Section Editor for Rocket Auto, RocketHQ, and Rocket Loanswith a focus on personal finance, automotive, and personal loans. 2000-2023 Rocket Mortgage, LLC. Therefore, the following names refer to the one and the same person: [list name variations] (Name after birth) (Name recorded in school) (Name after marriage) The above are the variations of the same name and should not be considered name changes. The name affidavit may include maiden name, married name, other names used, and all variations of the names that appear in other documents. You must log in or register to reply here. Youll be asked to submit a pile of documentation during the mortgage loan process, including bank statements, tax returns, pay stubs, and more. Be clear and write with as much detail as you can since someone else will need to understand your situation. This happens more often with more common names, such as Robert and Jane. $.' E Your lender needs to know exactly who they are providing a loan to. Comparative assessments and other editorial opinions are those of U.S. News Visit jdpower.com/awards for more information. Username or Lenders need to know you have no trouble managing your finances. This can mean a first apartment rental. Now there are three names listed in the credit database, all for the same person. Letters of explanation are requirements from secondary authorities that own or back the loan in many cases. I hope that you have understood the entire situation and find no problem in bringing modifications to the letter. Name Affidavit is a document in which a person certifies all the names that have been used by the person. In looking at the figure below, let's say that strain A (with the green RNA) is an H1N1 virus and strain B (with the blue RNA) is an H2N5. The following are examples of reasons you may be required to provide a letter of explanation. Rocket Mortgage lets you get to house hunting sooner. Mortgage companies use finance professionals called underwriters to oversee underwriting. 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). Sometimes, what we call a discrepancy or error is not an error or problem but an intentional variation. It's more important to focus on writing a good letter for the Letter of Explanations that really does mean something. Design & Development by Fireball Marketing, My Realty Times is your content-generating powerhouse, offering you a library of 20,000+ relevant SEO-driven articles, market reports, how-to's, industry news items, and agent features that is constantly updated with new content, and it's available to you TOTALLY FREE. Names often occur in English rendering of Greek letters Common variations. Sometimes, there is a kind of error or ambiguity in our documents that causes so many problems for other people. Even if the variation was intentional and not a mistake, you should apologize for not having it communicated earlier. Furthermore, lenders that offer jumbo loans may have additional qualification standards. An AKA, or Also Known As letter is one where the individual confirms a name variation has been used in the past. / = > ? Robert is too formal, he thinks. We have moved a lot during our marriage for various reasons. For example, "I am writing to explain the late payment reported in Jan. 2014 for credit card account 123456," or "Below is an explanation for each of the name variations that appear on my credit report." x John Smith. The information the underwriter sees doesn't always tell your entire financial story. The Federal Housing Administration (for FHA loans), Department of Veterans Affairs (for VA loans) and Fannie Mae or Freddie Mac (for conventional loans) impose such underwriting standards on lenders. x x x    F x x     0_ F  $ 0 T  " C ` "  " x  @ L + 6  a , * T " > : SIGNATURE/NAME AFFIDAVIT AND AKA STATEMENT DATE: FILE NO. & Letter Regarding Parking Issues - Sample Letter of Complaint About the Parking Issues in Reserved Parking; Request Letter to Block a Particular Phone Number - Sample Letter Requesting for Phone Number Block on Your Mobile Phone; Mobile Phone Battery Complaint Letter - Sample Letter Complaining About Faulty Mobile Phone Battery Name variation 2 as shown on my Alberta Operator's Licence____ 3. C Shashank Shekhar, CEO and founder of Arcus Lending in San Jose, California, says your letter should include all of the relevant information the lender asks for, presented in a way that gives a clear picture of your situation. Any ideas what to say??? Send the letter in a timely manner to keep your mortgage application on track. When it comes to mortgage letters of explanation, less is typically more. DavidReed(Austin, TX) is the author of Mortgages 101, Mortgage Confidential, Your Successful Career as a Mortgage Broker , The Real Estate Investor's Guide to Financing, Your Guide to VA Loans and Decoding the New Mortgage Market. #Fever I am sorry in advance to ask for todays leave as I woke up with #1 Re. 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. The Letter of Explanation form is 1 page long and contains: 0 signatures. The letter is fairly straightforward. Letter of explanation for address: Take this approach if your credit report pulls up multiple addresses under your name. Subject line should read "RE: Your name, loan number". 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