Hey there, are you looking for a mortgage loan but have an employment gap in your work history? Don’t worry, it’s not uncommon and there are solutions to help. One of those solutions is to provide a letter explaining the gap in employment to the mortgage lender. To help you get started, we have included a sample letter of employment gap for mortgage loan that you can use as a reference. You can find examples online and edit them as needed to suit your individual situation. The letter can be a helpful way to provide context and an explanation for lenders so that they can better understand your employment history. So, if you’re struggling to get approved for a mortgage loan due to an employment gap, take a look at our sample letter and give it a shot. We hope it makes a difference for you!
The Best Structure for a Sample Letter of Employment Gap for Mortgage Loan
When applying for a mortgage loan, it’s important to provide all the necessary documents and information to the lender. One of the most important documents is the employment verification letter. If there’s a gap in your employment history, you may need to provide an explanation letter to the lender. Here’s the best structure for a sample letter of employment gap for a mortgage loan:
Introduction
The first paragraph of the letter should introduce yourself and explain the purpose of the letter. You should mention the name of the lender and your name, address, and contact information. You should also state the reason why you’re writing the letter – to explain an employment gap in your employment history.
Explanation of the Employment Gap
In this section, you should provide a detailed explanation of the employment gap. You should be honest and straightforward about the reasons why you were out of work. You may have taken some time off to travel, start a family, or deal with a health issue. Whatever the reason, you should provide a clear and concise explanation.
Steps Taken to Resolve the Employment Gap
After explaining the employment gap, you should share the steps you took to resolve the issue and get back to work. You might have taken some courses to improve your skills or started a side business to fill the gap in your employment. This section is an opportunity to show the lender that you’re a responsible borrower who took action to improve your employment situation.
Conclusion
The final paragraph of the letter should summarize your explanation of the employment gap and reiterate your commitment to making payments on time and being a responsible borrower. You should thank the lender for considering your application and express your willingness to provide any additional information if needed.
In conclusion, providing a sample letter of employment gap for a mortgage loan can help explain your employment history to lenders. Keep the structure clear and concise and make sure to provide an honest explanation for any gaps in your employment history. This will help increase your chances of getting approved for the mortgage loan you need.
Sample Letter of Employment Gap for Mortgage Loan
Medical Leave
Greetings,
I am writing to provide a recommendation for [NAME] who was previously on medical leave from work. During the [DATES] period, [NAME] was unable to commit to their job due to a medical condition that required attention and treatment. As a result, they had to take some time off work.
We understand that this gap in employment may cause some concern; however, [NAME] has since fully recovered and returned to work. They are now actively back in the workforce and can provide us with their work history and salary details. We can confirm that they have been in good standing since their return to work.
We believe that [NAME] is a valuable and reliable employee, and their previous leave was only a temporary setback. Please don’t hesitate to contact me if you have any additional questions or concerns.
Thank you for your time and consideration.
Best regards,
[YOUR NAME]
Caregiving Responsibilities
Dear [MORTGAGE LENDER],
I am writing to support [NAME] and explain their employment gap resulting from caregiving responsibilities for a family member. [NAME] had to temporarily leave their job without pay to provide care for their ill family member. The period of absence was from [DATES].
[NAME] is a committed and responsible person who has diligently fulfilled their caregiving responsibilities. They managed to balance their role as a caregiver while actively looking for work during their free time. Now that their caregiving duties are over, [NAME] is seeking full-time employment to support themselves financially.
While there was a brief interruption in employment, [NAME] was able to maintain their skills and keep up with industry developments. They completed some online training and certifications, which they can provide proof of upon request.
We strongly recommend [NAME] as a trustworthy and committed employee who will make steady progress towards fulfilling their financial obligations. If you need any further information from me, please do not hesitate to ask.
Thank you for your consideration.
Best regards,
[YOUR NAME]
Job Loss Due to Company Restructuring
Dear [MORTGAGE LENDER],
I am writing on behalf of [NAME], who is currently applying for a mortgage loan, which requires a letter of recommendation to explain their employment gap. [NAME] was previously employed by [COMPANY NAME] as [JOB TITLE] from [DATES]. Unfortunately, the company underwent restructuring and laid off some staff, and [NAME] was among the affected employees.
After the loss of their job, [NAME] embarked on a job search, applying for various positions that match their skills and experience. [NAME] put in considerable effort and applied for several career opportunities, including attending interviews, and actively networking during this period. Eventually, [NAME] secured a new job [DATE].
We hope that you understand [NAME]’s temporary disconnection from work due to the unforeseen circumstances that followed the restructuring of their former company. We recommend [NAME] as a promising and reliable future employee who has dedicated their time to seeking continued employment after their layoff. If there’s any additional information you require, please do not hesitate to contact me.
Thank you for your time.
Best regards,
[YOUR NAME]
Maternity Leave
Dear Sir/Madam,
This letter is a verification of the employment gap of [NAME]. [NAME] was on maternity leave from [DATES]. During this time, they were away from work to look after, care for, and bond with their child.
[NAME] returned to work after their maternity leave and has been working diligently since. They have a stable job and have maintained a steady income. Their work record is excellent, and they have a strong track record of meeting their job responsibilities and exceeding their employer’s expectations.
We hope that you will understand and make positive consideration for [NAME] in their mortgage loan application. They are financially stable and will meet all the necessary requirements for a successful loan application. If you require additional information about [NAME], please don’t hesitate to contact me directly.
Thank you for your cooperation.
Best regards,
[YOUR NAME]
Relocation
Dear [MORTGAGE LENDER],
This letter is in recommendation for [NAME], who has applied for a mortgage loan. [NAME] had a gap in their employment, which resulted from relocation to a new city. They had to temporarily leave their employment due to the relocation, which occurred from [DATES].
Since then, [NAME] has been actively looking for new employment in their new city and has recently secured employment. [NAME] has all the necessary qualifications and is qualified for their job, with the potential for earning a steady income. [NAME] has been staying updated with their skillset and certifications to ensure they are current and relevant for their new role.
We hope that you will make a fair consideration for [NAME] in their mortgage application. Their transition to a new city may have caused a temporary interruption in their employment, but they are now settled and preparing for a financially stable future. If you have any additional questions, please do not hesitate to contact me.
Thank you for your time.
Best regards,
[YOUR NAME]
Personal Reasons
Dear [MORTGAGE LENDER],
I am writing on behalf of [NAME], who has applied for a mortgage loan. [NAME] experienced a gap in their employment from [DATES] due to personal reasons. Although we cannot disclose the private nature of these reasons, their employment gap was only temporary.
[NAME] has since returned to work and has maintained steady employment since then. They have been making a consistent income and, in some cases, exceeding their employer’s expectations. [NAME] is ambitious and has been investing time in developing their skillset to ensure they are current and at the right level for their job role.
We hope that you understand the personal circumstances that caused [NAME] to take a temporary break from work. We believe that [NAME] should be given an equal chance to seek financial stability and are confident that [NAME] has a bright professional future. If you need further information or clarification, please don’t hesitate to contact me.
Thank you for your consideration.
Best regards,
[YOUR NAME]
Voluntary Leave
Dear [MORTGAGE LENDER],
I am writing to vouch for [NAME], who has applied for a mortgage loan. [NAME] took a leave voluntarily from work for [DATES]. During this time, they decided to take time off to focus on personal matters, and because of this, there was a gap in employment.
[NAME] is now ready to re-join the workforce and is seeking financial stability. They have been applying for various positions, with the intention of finding stable employment within the next few months. [NAME] is highly effective in their job when given the opportunity to work and demonstrates a positive work ethic.
We are confident that [NAME] will be a great asset to any company and will be a reliable employee who takes their responsibilities seriously. If you have any queries, please don’t hesitate to contact me.
Thank you for your time.
Best regards,
[YOUR NAME]
Tips for Writing a Sample Letter of Employment Gap for Mortgage Loan
If you are applying for a mortgage loan and have an employment gap, you may need to write a letter explaining the reason for the gap in your employment. Here are some tips to help you draft a convincing letter:
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Be honest: When writing your letter, it is important to be truthful about the reasons for your employment gap. Lying or covering up the gap will only hurt your chances of getting approved for a mortgage loan.
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Explain the reason for the gap: Whether you were laid off, took time off to care for a family member, or went back to school, make sure to explain the reason for your employment gap in detail. This will help the lender understand your situation better.
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Highlight any positive steps you took during the gap: Even if you were not employed during the gap, you may have taken positive steps such as volunteering, freelancing, or starting a business. Highlight these accomplishments in your letter to show the lender that you were still active and productive during the time.
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Show stability and future employment prospects: Lenders want to make sure that you have stable employment and will be able to make your mortgage payments. If you have found new employment or have a job offer, include this in your letter to show that you are on the right track.
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Keep it concise and to the point: Your letter should be brief and to the point. Avoid rambling or including unnecessary details. Stick to the facts and explain your situation clearly and concisely.
By following these tips, you can write a letter that effectively explains your employment gap and increases your chances of getting approved for a mortgage loan.
Frequently Asked Questions about Sample Letter of Employment Gap for Mortgage Loan
What is a sample letter of employment gap for mortgage loan?
A sample letter of employment gap for a mortgage loan is a document that explains to the lender the employment gaps in your work history. It should also detail your current financial situation, demonstrating your ability to repay the loan.
Why is a letter explaining employment gap required for a mortgage loan?
Lenders need to verify the stability of your employment before giving you a mortgage loan. Therefore, they require an explanation of any gaps in your employment history that are longer than a few months.
What should be included in the letter of employment gap?
The letter should include accurate information about your employment history, your reason for the gap, details about what you did during the gap, and any other relevant information such as income sources or employment prospects.
Can a letter of employment gap be written by the borrower?
Yes, a borrower can write their own letter of employment gap. However, it is best to consult with a mortgage broker or loan officer to ensure the letter meets their requirements.
What is the appropriate tone to use in a letter of employment gap?
The tone should be honest and concise. Avoid sounding defensive or apologetic; instead, focus on highlighting any accomplishments during the employment gap.
How should the letter of employment gap be formatted?
The letter should include a professional and courteous tone and be written in standard business letter format. It should also provide contact information and be signed and dated.
Is it necessary to provide any additional documentation with the letter of employment gap?
It may be necessary to provide proof of current employment. This can include pay stubs or an employment verification letter from the current employer.
Wrapping it Up
Well, that’s all about the sample letter of employment gap for a mortgage loan. We hope we have cleared all your doubts and provided you with a clear understanding of what the letter should include. Remember, getting a mortgage loan is a big decision, and taking the time to properly explain an employment gap can make all the difference. At any rate, thank you for taking the time to read our article. Be sure to come back for more informative content. Good luck with your mortgage application!