Michigan mortgage rates
When getting a mortgage the bank has to document everything in order to sell the loan. Most lenders and banks sell the loans, so all documents have to be in the file. They have to be able to connect the dots.
Sometimes banks ask for a letter of explanation. It is a common thing to do. Some of the letters of explanation they ask for are:
- bad credit explanation
- loss of income explanation
- housing explanation
- credit inquiry explanation
If you have had bad credit in the past they might ask you to explain why you had a bankruptcy or foreclosure. Or if you have lots of inquiries on your credit report the bank wants to make sure you are applying for a lot of credit cards or anything else that would affect your credit. Or the loss of income letter explains what your income is going to be and why you lost income.
The smartest thing to do is to write a one line explanation. Don’t get lengthy don’t say too much. The more you say the more likely the bank will investigate the issue more.
If you have had lots of credit inquiries and you have not applied for more credit. The simple letter of explanation should be “The reason for all the inquiries on my credit report was beause I was shopping for a good rate with different mortgages.
If you have to do a loss of income explanation. It should simply say that my income was down because of Detroit’s economy. Never lie about the reason but keep it simple. On this loss of income explanation they may consider that this years income will be your income for the future. They may use that income as your base salary.
So when your loan officer asks for a letter of explanation. Tell the truth and keep it very short and simple.
If you are looking for a good Michigan mortgage rate give me a call.
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