Are you currently searching for a mortgage but have gaps in your employment history that need explaining? You’re not alone. Many people experience gaps in their employment due to various reasons, such as taking time off for personal reasons or being laid off unexpectedly. Fortunately, lenders understand that these gaps can occur and often require a “letter of explanation” to accompany your mortgage application.
To help make the process easier for you, we’ve created a letter of explanation for employment gap for mortgage template that you can use as a guide. Whether you need to explain a few weeks or even months of unemployment, our template provides clear and concise language that you can easily edit to fit your particular circumstances.
By utilizing our template, you can provide your lender with a clear and thorough explanation of your employment gap. This can not only help increase your chances of being approved for a mortgage, but it can also provide peace of mind knowing that you’ve done everything you can to support your application.
So don’t let employment gaps hold you back from achieving your dreams of owning a home. Download our letter of explanation for employment gap for mortgage template today and take the first step towards securing your future.
The Best Structure for a Letter of Explanation for Employment Gap for Mortgage
When applying for a mortgage, you may be asked to explain any gaps in your employment history. This can be a nerve-wracking experience, but with the right structure, you can create a concise and convincing explanation. Here’s how to structure your letter of explanation for employment gap for mortgage:
1. Start with an introduction
Begin your letter with a friendly greeting and introduce yourself. Explain that you are writing to address a gap in your employment history and provide some background on your situation.
Example: “Dear [Lender’s Name], I hope this letter finds you well. I am writing to provide an explanation for a gap in my employment history that was noted on my mortgage application.”
2. State the reason for your gap in employment
It’s important to be honest about the reason for your employment gap. Whether it was due to personal reasons, health issues, or a job loss, explain what caused you to take time off from work.
Example: “I took a six-month break from work to care for an ailing family member. During that time, I was the primary caregiver and did not have the capacity to work full-time.”
3. Explain how you used your time during the gap
Showing that you were productive during your time off can help alleviate any concerns a lender may have. If you took courses or volunteered, mention it in your explanation.
Example: “Although I was not working, I used my time to take courses to enhance my skills and knowledge in my field. Additionally, I volunteered at a local non-profit organization.”
4. Show your commitment to returning to the workforce
Lenders want to see that you have a plan to return to work and continue earning income. Provide details on how you plan to do this, such as actively job searching or enrolling in a training program.
Example: “I am dedicated to returning to the workforce and have been actively searching for job opportunities. I have also enrolled in a training program to further develop my skills and increase my marketability.”
5. End with a summary and gratitude
Summarize your explanation and express gratitude for the lender’s time and consideration. This helps ensure that your letter leaves a positive impression.
Example: “In summary, I took a break from work to care for my loved ones, used my time productively, and am now dedicated to returning to the workforce. Thank you for taking the time to consider my explanation.”
By following this structure, you can create a compelling letter of explanation for employment gap for mortgage that can increase your chances of approval. Remember to keep your tone friendly, honest, and positive, and always strive to provide as much detail as possible. Good luck!
Letter of Explanation for Employment Gap for Mortgage
Gap Due to Illness
Dear Mortgage Lender,
I am writing to explain the employment gap in my application. During the period of
Thank you for your understanding as I provide this explanation for the employment gap. I hope that this information helps you fully assess my eligibility for a mortgage.
Best regards,
Your name
Gap Due to Maternity Leave
Dear Mortgage Lender,
I am writing to explain the employment gap in my application. I took time off from work to care for my newborn baby for
Thank you for your understanding as I provide this explanation for the employment gap. I hope that this information helps you fully assess my eligibility for a mortgage.
Best regards,
Your name
Gap Due to Family Caregiving
Dear Mortgage Lender,
I am writing to explain the employment gap in my application. I took time off from work to care for an ill family member for
Thank you for your understanding as I provide this explanation for the employment gap. I hope that this information helps you fully assess my eligibility for a mortgage.
Best regards,
Your name
Gap Due to Downsizing
Dear Mortgage Lender,
I am writing to explain the employment gap in my application. My former employer downsized and I was one of the employees who was laid off. I took
Thank you for your understanding as I provide this explanation for the employment gap. I hope that this information helps you fully assess my eligibility for a mortgage.
Best regards,
Your name
Gap Due to Personal Reasons
Dear Mortgage Lender,
I am writing to explain the employment gap in my application. During this time, I took a leave from work for personal reasons. I had to
Thank you for your understanding as I provide this explanation for the employment gap. I hope that this information helps you fully assess my eligibility for a mortgage.
Best regards,
Your name
Gap Due to Pursuing Education
Dear Mortgage Lender,
I am writing to explain the employment gap in my application. During this period, I took time off from work to pursue my education and further my career. I needed to acquire additional skills and knowledge to become eligible for
Thank you for your understanding as I provide this explanation for the employment gap. I hope that this information helps you fully assess my eligibility for a mortgage.
Best regards,
Your name
Gap Due to Travel
Dear Mortgage Lender,
I am writing to explain the employment gap in my application. During this period, I took a sabbatical to travel and broaden my understanding of different cultures. This experience was enriching and allowed me to expand my horizons. I am now eager to return to work.
Thank you for your understanding as I provide this explanation for the employment gap. I hope that this information helps you fully assess my eligibility for a mortgage.
Best regards,
Your name
Tips for Writing a Letter of Explanation for Employment Gap for a Mortgage Application
If you have an employment gap on your resume, you may be required to write a letter of explanation when applying for a mortgage. This letter should be a formal document that explains why you had a gap in employment, what you did during that time, and how you are prepared to re-enter the workforce. Here are some tips to help you write an effective letter of explanation:
- Be honest and direct: First and foremost, be honest about your employment gap. Explain the reason for your absence from the workforce, and don’t try to sugarcoat or invent details.
- Show initiative: If you took steps to stay current or improve yourself during the employment gap, mention them. For example, you may have pursued additional education, pursued a certification, or held part-time jobs.
- Stay positive: Your goal is to convince your lender that your employment gap won’t be an obstacle to repaying your mortgage. Emphasize any positive activities or achievements during the gap, such as volunteer work or personal projects.
- Keep it concise: While it’s important to provide enough detail, don’t make your letter too wordy or rambling. Stick to the main points and avoid tangents or irrelevant details.
- Show your readiness to return to work: Finally, assure your mortgage lender that you are ready to re-enter the workforce and have a plan for doing so. Highlight any interviews you have lined up or steps you are taking to find employment.
Remember, your letter of explanation is an opportunity to show your potential lender that you are a responsible borrower who has handled potential setbacks with maturity and preparedness. By following these tips, you can ensure your letter is strong, impactful, and helps you get the mortgage you need.
FAQs about Letter of Explanation for Employment Gap for Mortgage
What is a letter of explanation for employment gap?
A letter of explanation is a document that explains employment gaps in a borrower’s work history. It helps lenders assess the borrower’s risk level and determine whether or not they are willing to approve the mortgage loan application.
Do I need a letter of explanation for employment gaps?
It depends on the lender’s requirements and the specific circumstances surrounding your employment gap. Some lenders may require a letter of explanation if you have gaps in your employment history, while others may not. It’s best to check with your lender to determine what their specific requirements are.
What should I include in my letter of explanation?
Your letter of explanation should provide details on why you had an employment gap and what you did during that time (such as pursuing education, caring for a family member, or experiencing a medical issue). It should also include any supporting documentation that verifies your claims (such as medical records or educational transcripts).
Should I be honest about my employment gap?
Yes, it’s important to be honest about your employment gap in your letter of explanation. Lenders may check your employment history and if they discover that you lied or omitted information, it could result in your mortgage application being denied.
Can I still get approved for a mortgage if I have an employment gap?
Yes, it’s still possible to get approved for a mortgage even if you have an employment gap. However, it may depend on the specific circumstances of your gap (such as how long it lasted and what you did during that time). Ultimately, it will be up to the lender to determine whether or not they are comfortable with approving your application.
How long should my letter of explanation be?
Your letter of explanation should be concise and to the point – ideally, one page or less. Be sure to only include relevant information that helps explain your employment gap, and avoid going into unnecessary detail.
Can I use a template for my letter of explanation?
Yes, you can use a template for your letter of explanation. However, be sure to customize it to your specific circumstances and include all the necessary information as outlined by your lender.
Thanks for Stopping By
Well, there you have it! Hopefully, this letter of explanation for employment gap for mortgage template was helpful in addressing any questions or concerns your lender may have about your employment history. Remember to be honest and transparent about your situation, and provide any necessary documentation to support your claims. And, as always, thank you for stopping by and reading this article. We hope to see you again soon for more tips and tricks on navigating the mortgage process. Best of luck on your homebuying journey!