To be able to apply for a mortgage seems like a blessing – until you are asked why there is a gap in your employment history during the mortgage application process. Mortgage companies need to know that you have been employed constantly for a certain period of time (usually 2 years), before they can begin to process an application in your favor. In cases where an employment gap is evident, you will be asked to write a letter of explanation to provide the mortgage company with facts on why you were unemployed.
Why is a letter of explanation necessary to write? It is necessary to write one because you do not want your application to be rejected if you have a perfectly good reason for being jobless for some time. Mortgage companies may be rigid in many areas but they do consider situations like this, and you may have a good chance of actually obtaining a mortgage. If you don’t write a letter of explanation, your application is as good as rejected!
Details, details and more details! Details is what a letter of explanation is all about. You have a good leeway to provide as much detail as you want regarding your joblessness. Be true and provide additional support documents to assist your argument that you are indeed eligible for the mortgage in question.
Have a look at the following sample letter of explanation for mortgage employment gap to get ideas:
Sample Letter of Explanation for Employment Gap (Mortgage Purpose)
847 New Street #241
Sandy Springs, GA 63299
April 17, 2015
Ms. Anita Rudyard
Mortgage Officer
Easy Mortgage Loans
8273 Lake Island Road
Sandy Springs, GA 66238
Dear Ms. Rudyard:
Please refer to my application number EML-374-SS under which I have applied for a mortgage loan from Easy Mortgage Loans. Yesterday, I received a letter from you asking for a “letter of explanation for the gap in my employment”. Please consider this as a letter of explanation and refer below for details on why an employment gap is evident in my application.
In February 2014, I lost my job at Diva Jewelry when the store closed down. Since then, I had applied at many places but there were no positions open at that time. In January, 2015, I finally secured a position as a sales representative at K-Mart and have been working here ever since. Please note that the 11 month gap in my work history actually denotes months of applying for job at different companies without any success. You must be aware of the recession that the country is presently going through so I am sure that you understand my position.
At K-Mart, my job is a permanent one (please refer to a copy of my employment contract enclosed with this letter) and with a company that has been around for decades. I do not foresee any laying off and since I am not a contractual employee, there is no fear of my contract not being renewed after the first year.
In view of the above, I implore you to reconsider my application for the mortgage loan. If there is any other information that you require to assist you in reprocessing my application, please contact me at (333) 333-3333.
Thank you.
Sincerely,
Gemma Collins
(Enc: Copy of employee contract)