When you apply for a home loan, your lender will do a deep dive into your financial history. Depending on what it finds in your bank statements or credit report, additional documentation may be necessary.
In this article (Skip to. )
Commonly referred to as an ‘LOE’ or ‘LOX,’ letters of explanation are often requested by lenders to gain more specific information on a mortgage borrower and their situation.
When it comes to mortgage letters of explanation, less is typically more.
Remember to be honest, formal, and concise when writing a letter of explanation for your mortgage lender.
Remember to include your mailing address, phone number, and the number of your mortgage loan application (or the property address for which you’re applying).
You’ll be asked to submit a pile of documentation during the mortgage loan process, including bank statements, tax returns, pay stubs, and more.
