Letter of Explanation for a Mortgage in Florida: What to Write and What to Leave Out

A letter of explanation mortgage Florida underwriters request answers one specific question in a few plain sentences.

Short and factual, plus backed by a document is the standard. Long and emotional is the common mistake. Our guide to underwriting conditions in Florida covers where these requests come from.

What it is

A signed statement from the borrower explaining an item in the file.

A credit inquiry, a large deposit, a gap in employment, a late payment, an address discrepancy.

The underwriter needs it to document the file for the investor.

It is a formality most of the time.

It becomes a problem only when it raises new questions.

The format

Date, your name, the loan number, the subject.

Two to five sentences: what happened, when and why, plus what you did about it.

Sign and date.

Attach the supporting document.

One letter per topic.

Large deposits

State the source and attach the paper trail.

See our guide to large deposits and source of funds in Florida.

A sale of a car: the bill of sale and the deposit slip.

A gift: the gift letter and the donor's statement.

Cash deposits are the hard case; explain and expect follow-up.

Credit inquiries

List each inquiry and state whether it resulted in new credit.

See our guide to what not to do before closing in Florida.

Shopping for the mortgage itself is a normal explanation.

A new account must be disclosed and counted.

Do not omit one; the underwriter already has the list.

Late payments

The cause, the date, and the fix.

See our guide to late mortgage payments in Florida.

Illness, a servicing transfer, a job change.

Attach evidence where it exists.

One event with a fix reads better than a pattern.

Employment gaps

Dates and reason, plus what you did during the gap.

See our guide to employment gaps and mortgages in Florida.

Education, caregiving, relocation, a layoff.

Current employment is what matters; the gap just needs a sentence.

Attach the offer letter for the current job if recent.

Address discrepancies

A credit report showing an address you never lived at, or a mailing address that differs from residence.

State each address and the dates.

A relative's address used for mail is common.

Occupancy questions on a new purchase are sensitive; answer accurately.

See our guide to snowbird second home mortgages in Florida for the occupancy categories.

Bankruptcy or foreclosure

The event, the date, the cause, and the recovery.

See our guide to VA loans after foreclosure in Florida.

Extenuating circumstances need documentation: medical records, layoff notices.

One-time events are accepted; repeated ones are not.

Keep it factual.

What to leave out

Blame and apology, plus life story.

Information about anything the underwriter did not ask about.

Speculation about what the lender wants to hear.

Anything you cannot document.

Every extra sentence is a possible new question.

Tone

Neutral and businesslike.

First person, past tense, plain words.

No excuses; causes and fixes.

The underwriter reads dozens of these a week.

Clarity is the whole skill.

Supporting documents

The letter is the label; the document is the proof.

Bank statements, bills of sale, letters from employers, court records.

See our guide to gift funds in Florida for the gift package.

A letter without a document invites another request.

Send both at once.

Florida-specific requests

An explanation of a hurricane forbearance.

See our guide to mortgage forbearance in Florida.

An explanation of seasonal or tip income.

An explanation of a foreign deposit.

See our guide to foreign income and mortgages in Florida.

Timing

Send the letter the day it is requested.

See our guide to closing date delays in Florida.

A delayed letter delays the approval.

Anticipate the request: if you know a deposit will be questioned, write the letter with the application.

Pre-emptive letters shorten the process.

Manual underwriting

Manual files rely on letters more heavily.

See our guide to manual underwriting in Florida.

The underwriter is building a case from your explanations and documents.

Thorough letters help.

Still short; still documented.

A model letter

Date. Re: deposit of a stated amount on a stated date. The deposit was proceeds from the sale of my vehicle to a named buyer; the bill of sale and the deposit receipt are attached. Signed.

Three sentences and a document.

That is the whole letter.

The CFPB's mortgage process guide describes where it fits.

Copy the shape for every request.

Co-borrowers

Each borrower writes and signs letters for items on their own credit or accounts.

A joint account gets one letter signed by both.

See our guide to co-signing a mortgage in Florida.

Keep the stories consistent between letters.

Underwriters compare them.

Where to start

Look at your own statements and credit report for anything an underwriter will ask about.

Write the letters and gather the documents before you apply.

Then start a conversation with the file already explained.