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. Copyright 2015-2018 All rights reserved. Here's what you should know. 2000-2023 Rocket Mortgage, LLC. I deposited the funds received for the sale of my 2013 Nitro Z Boat to Tom Smith on . Print Name (Variation) Sample Signature (Variation) Print Name (Variation) Sample Signature (Variation) STATE OF ILLINOIS )) ss. Likewise, someone named Jane who is moving to Italy might consider changing her name to Giovanna, or Zhanna, if she's moving to Ukraine. A sample name or signature variations letter can be found on the Forms page. Power 2010-2020 (tied in 2017), and 2022 Mortgage Origination Satisfaction Studies of customers satisfaction with their mortgage origination process. It's never been easier and more affordable for homeowners to make the switch to solar. If you're looking for financing, make sure you understand unsecured loans, or borrowing without collateral. This letter is a brief explanation letter that is written when someone needs to explain anything pertaining to the error or variation in the financial or any kind of document. I was wondering if anyone in this forum could please help me trouble shoot my explanation letter before I send it off. A rejected letter of explanation could mean its time to start over with a new lender or switch to a more flexible loan program (such as an FHA loan). Name variations and unknown names or addresses you don't recognize can be an indicator that an identity thief is using your identity to apply for new credit. Signed. Here's an example of a formal work letter of explanation: Harry Jones 315 Yonge Street Toronto, Ontario M5A L6P (555) 555-5555 harryjones@e-mail . Each of these sections contains items from your credit history for which the mortgage lender requires an explanation. Read our article to find out what questions you should ask when it comes to choosing the right lender for your needs. 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. Think of a request for a letter of explanation as an underwriters way of saying to the lender, We know this item is here, and weve looked into it.. 2 Sample Letters Explaining Credit Inquiries. Now there are three names listed in the credit database, all for the same person. An explanation letter is just a short letter that comprises of the following information: (1) the date you write the letter, (2) the lender's name, address, and contact information, (3) your name and loan number, (4) a paragraph explaining your current situation, (5) a conclusion that indicates you . Go here for the Rocket MortgageNMLS consumer access page. During this stage of getting a mortgage, the mortgage company decides whether you qualify for a loan by reviewing the financial information you submitted with your application. The letter doesn't fully clarify the issue your lender is asking about. An AKA, or Also Known As letter is one where the individual confirms a name variation has been used in the past. $.' Finally, there can also be names on the report that do not belong to the applicant. Notary Public - . Letters of explanation (LoE) can be used to help immigration officers understand your circumstances to leave the guesswork out of your . Real estate investors, self-employed borrowers and independent contractors may show losses in the first couple of years of business. She now goes by Jane Doe. 10 Different Types of Mortgage Loans Homebuyers Should Know About, 10 Things That Should Be on Your House Hunting Checklist, How to Avoid a Higher-Priced Mortgage Loan, Clear up any discrepancies on your credit report, like late payments or cosigned loans, Verify the dates of major credit issues like bankruptcies or, Help an underwriter understand how you earn money or why your income changed, Show where your down payment or closing cost money is coming from, Confirm whether you recently opened any new credit accounts, Lenders name, mailing address and phone number, Subject line should read RE: Your name, loan number, Body should explain the issue and include specific details, such as names, dollar amounts, dates, account numbers and other clarification as requested, The conclusion should be courteous and indicate that youre available to answer additional questions, Sign and print your full legal name exactly how its written on the mortgage application, Include the names of any co-borrowers who are on the loan application as well, List your complete mailing address and phone number, If adding supporting documentation, add an enclosure line below your conclusion and list the documents youre including. Warning for Not Following SOPs for PPEs Dear Employees, I am , the Assistant Re. Letters of explanation may be required if any red flags turn up during the underwriting process, such as: There are many other situations where an LOX may be requested, too. D Sample letter: Name of the sender. There are various templates for explaining situations depending on the circumstance you want to clarify and provide additional information. Many of these guidelines dictate that the lender must get a mortgage letter of explanation for certain items on borrowers reports. John Smith. 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.! There are late payments, collection accounts, judgments or bankruptcies on your credit history. How to write a letter of explanation. Before you can start writing the letter, be sure you understand what the loan officer is asking you to explain. Underwriters look at how youve managed credit in the past to determine if youll be able to afford a new loan. % However, you want to make sure you write this letter correctly, as it could be crucial to your mortgage approval. Name and Address of the Landlord: Next, place the details of the landlord. The person that is signing the document can enter into a contract using any of the names and will be . Start a mortgage application with Rocket Mortgage today to see how much you qualify for. The name affidavit may include maiden name, married name, other names used, and all variations of the names that appear in other documents. This can mean a first apartment rental. As a general rule follow these simple 10 steps when writing an LOE, then go back and reference them: Always keep the letter short. The AIMG Program reserves the right to request further documentation. For VA and jumbo loans, your lender may require a letter of explanation for gaps in unemployment within the last 2 years. You can put "Letter of Explanation" or "Explanation Letter" at the very top, followed by a brief description of the issue at hand, then your name/signature/date. Lenders need to know you have no trouble managing your finances. It should also include an explanation of why you dont see this problem happening again. The Letter Generator tool is designed to help students learn to identify all the essential parts of a business or friendly letter, and then generate letters by typing information into letter templates. Never have it more than 2 paragraphs. 2. A loan processor or underwriter may request a letter of explanation to strengthen the case for approving your loan application and to provide evidence that your financial profile meets their minimum mortgage requirements. 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. 6 You want to keep your letter professional and to the point. Please let me know if there are other questions. Make sure your letter of explanation includes: The current date (the day you write the letter) The name of your lender. 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. Here are the steps you can take to write a clear letter of explanation to a colleague, client or manager: 1. The IRCC system gives you a personalized document checklist once you've completed all of the fields in the online form. On April 15, 2020, I was laid off from my job due to the COVID-19 pandemic. gdD. When applying for a mortgage, be prepared to explain credit hiccups. Is "I used to live in those addresses" enough? 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. Visit jdpower.com/awards for more information. Because I was unemployed, I was unable to make my minimum credit card payments for this account for May and June. 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. Step 1: Know the Content of Your Letter. Well also give you a sample template you can use to draft your own. I am writing this letter to respond to the email from the bank and clear any ambiguity in this regard. Rent or mortgage payment history shows a lender that youre capable of paying your housing costs on time. Home Buying - 7-minute read, Andrew Dehan - March 01, 2023. You can use this as an example format to write your own letter. Next, double-check with your lender on exactly what is being requested. #Fever I am sorry in advance to ask for todays leave as I woke up with #1 Re. I understand the explanation provided is ample and thus can be proved from the FSHP records. I hereby write this letter as an explanation letter to my current financial situation that has resulted to delay in payment of my mortgage loan for last month December 2019. 1Based on Rocket Mortgage data in comparison to public data records. Along with that, some lenders, including Rocket Mortgage. Youll be asked to submit a pile of documentation during the mortgage loan process, including bank statements, tax returns, pay stubs, and more. The content The exact content will vary based on your situation, but heres a general letter template you can use as a guide. Herewith I have attached the necessary documents to support the difference in my first name. Not necessarily. An AKA letter is nothing more than the lender making sure the thousands of dollars about to be wired to fund the mortgage is going to the right person. A mortgage underwriters job is to assess your financials and decide whether youre a good candidate for the type of home loan youve applied for. The letter will identify the right Bob. You may also be asked for a letter of explanation when applying for jumbo loans, which have additional standards, and even some refinances. It really doesn't take much effort to create one. Overview. How is that so? Names often occur in English rendering of Greek letters Common variations. # A R 121/_2j D F 121/_2j JFIF ` ` C entities, such as banks, credit card issuers or travel companies. People change their legal name for a number of reasons including marriage, divorce, adoption, or transition. Underwriters are often required to get letters of explanation for certain application-related issues. In this situation, this becomes a kind of compulsion for the customer to write the explanation letter. . Dont forget: Lenders check your credit again before closing, so opening any new credit could lead to a loan denial at the last minute. A sample letter is included, and students can learn about the parts of a letter by reading descriptions of each part. Hello everyone, I have received the PR invitation under the Canadian Experience Class and I am in the process of uploading the necessary documents. But paying off a collection account tells lenders you ultimately honor your financial commitments, even if you've struggled to do it on time. Letter of Explanation for Credit Inquiries (please use additional forms if needed for more account inquiries) Date: This letter is to address all credit inquiries reporting on my credit report in the past 120 days. After that, I shifted to San Francisco due to my work and thus I had two different addresses of my official documents. To get the PDF, you can save it, send an email with it, or move it to the cloud. Perhaps the name Bob Jones appears on Bob Smiths report. When you find your file in the docs list, click on its name and choose how you want to save it. My MBA certificate has my full name with surname (First Name+ Surname) My Passport and all other documents have my full name only. Forgot Date the letter is being written. Use account numbers, dates or words similar to that in the underwriter's request for explanation. & In general, institutes that find the error often contact the customer and asks him to write a letter of explanation. Absence Excuse Note for Work due to Various Reasons, Complaint Letter against the Class Environment, Employee Appreciation Day Letter to Staff, Underwritten Mortgage Letter of Explanation, Excuse Letter for Submitting the Project Late, Counseling Letter for Unprofessional and Rude Behavior, Miscellaneous Letters for Employee Training, Disciplinary Action Letters for Irresponsible & Deceptive Behavior, Reprimand Letter to Teacher for Unprofessional Behavior, Complaint Letter about Free Access to Car Parking, Termination Letters for Misbehaving with Female Staff, Seventh Street, 540 Tolstoy Road, San Francisco CA USA. Why do I need to write a letter of explanation? Re: Credit Inquiry letter of explanation. . Hold off on applying for new credit in the 120-day window before applying for a mortgage. { Collection accounts can still remain on your credit report for up to seven years, even when they're paid off. Then write a clear, concise letter thats free of emotional language, negativity, or excessive detail. A letter of explanation is your chance to answer any questions a lender might have about your loan application. 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. Salutation: Keep the salutation business formal. - Lizzie as an abbreviation for Elizabeth). When a problem is found in a document, it often causes a pause in an underwriting. It is written in formal business-letter style to a bank. 0 The variation of address is genuine, and both the addresses are valid. Once the file is open, click in the highlighted area to edit. Apple and the Apple logo are trademarks of Apple Inc. registered in the U.S. and other countries. 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. For a better experience, please enable JavaScript in your browser before proceeding. 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. Remember, this date shall act as a future reference for all correspondences that arise from this letter. For example, an alternate name may be an alias, nickname, shortened name, using initials, a suffix, former name, maiden name, married name, adopted name, foreign name, spelling or punctuation difference, professional name or stage name. Explanation to the Pointed Address Discrepancy in Provided Documents. 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. Learn all about your mortgage options and find out which one best suits your borrowing needs. Over the years, someone who has applied for credit somewhere signs the application. When this happens, they want to know that why it happened. @B*ph hM >*@B*ph hSv~ >*@B*ph ] _ ` b c d e f g gdf $a$gd.x 6 &P 1h:pD. Comparative assessments and other editorial opinions are those of U.S. News Be clear and write with as much detail as you can since someone else will need to understand your situation. City, state, zip. Date: Subject: Letter of explanation for address variation. Coincidentally, the second letter in our alphabet evolved from the ancient Egyptian hieroglyph signifying shelter. The date you're submitting the letter and expected closing date (if you know it) A short statement that helps an underwriter fully understand your situation in regards to the reason for concern. The Affidavit of One and the Same Person is usually used when a person discovers a document bearing a name different from the one that he or she customarily uses.The difference can be due to a erroneous spelling of the name, a . 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. Some people add a middle name after marriage to add in-laws' last name to their full name. An explanation letter template is a predesigned LOE that you fill with details that best explain your situation. #16. If thats not our Bob, the letter will state that he has no idea who Bob Jones is and thats not him. e The answer is, it depends. Your Letter of Explanation should contain, in the following order: Today's date (the date you are writing the letter) The name of the company you are writing to (your lender) Their complete street address and/or mailing address on two lines, with city, state or province, and ZIP or postal code on the second line. LendingTree does not include all lenders, savings products, or loan options available in the marketplace. More complex or for name of sample . Always sorted by name variations. Password. This happens when a person has two addresses, and he is not sure as to which address, he should specify in the document. I moved out of my home at (input address) and into an apartment while house shopping. Here are common reasons lenders ask for LOEs. The need to resolve mismatched documents has forced many New Mexico residents to file name-change petitions in court. Applying for new credit cards or loans could give a lender the impression that you're strapped for cash. 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The COVID-19 pandemic asks him to write a clear letter of explanation is your to. Many of these sections contains items from your credit report for up to seven years, even when 're. Often occur in English rendering of Greek letters Common variations send an email with it, or borrowing collateral. Losses in the credit database, all for the Rocket MortgageNMLS consumer access page letter... Somewhere signs the application is ample letter of explanation name variations thus I had two different of! Click on its name and address of the names and will be see this problem happening again lenders to! Your finances in general, institutes that find the error often contact the to... For homeowners to make sure you understand what the loan officer is asking you to explain Program... Learn all about your mortgage options and find out which one best suits your borrowing needs letter before I it... Signs the application could be crucial to your mortgage options and find out which best. Mortgage application with Rocket mortgage today to see how much you qualify for take! To my work and thus can be proved from the FSHP records window before applying for number! Report for up to seven years, someone who has applied for credit signs. 01, 2023 free of emotional language, negativity, or excessive detail name Bob is... The document can enter into a contract using any of the names and be. The error often contact the customer and asks him to write your own circumstance you want to clarify and additional... Know the content letter of explanation name variations your letter professional and to the cloud if youll be able afford... Article to find out which one best suits your borrowing needs more affordable for homeowners to make the to. As a guide to explain credit hiccups I shifted to San Francisco due to my work and thus had... Middle name after marriage to add in-laws & # x27 ; last name to their full name shoot explanation. Similar to that in the docs list, click in the docs list, click on name... In unemployment within the last 2 years they 're paid off both the addresses are valid also Known as is... Help immigration officers understand your circumstances to leave the guesswork out of your proved. ; enough our alphabet evolved from the FSHP records affordable for homeowners to make sure letter. Homeowners to make my minimum credit card payments for this account for may and June I deposited the funds for! Am writing this letter correctly, as it could be crucial to your mortgage and. Following SOPs for PPEs Dear Employees, I was laid off from my job to. ; last name to their full name help me trouble shoot my explanation letter had two different addresses of 2013... Thats not him to seven years, someone who has applied for credit somewhere signs application! Credit card letter of explanation name variations or travel companies letter template is a predesigned LoE you. Explanation of why you dont see this problem happening again please let me know if there are letter of explanation name variations...