You should ask the lender what, specifically, it needs to know, but having a letter of explanation template to work from can come in handy. The good news is, it doesn't have to be a lengthy document.

A letter of explanation for a mortgage is a document that addresses red flags that might derail a mortgage approval, such as a period of unemployment or an unpaid credit balance. A letter of ...

Get guidance from trusted mortgage experts. If you're buying a home and your lender asks for a letter of explanation (LOE), it doesn't necessarily mean you’re in trouble. Lenders often request ...

If your credit report has any negative history, or if there is something in your mortgage application that requires more information, a lender may ask you to submit a “letter of explanation.” ...