Key takeaways. 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.

The U.S. Department of Veterans Affairs now estimates that more than 600 veterans erroneously received letters telling them they had been diagnosed with Lou Gehrig's disease, VA spokeswoman Katie ...

If your credit report has any negative history, a lender may require a letter of explanation for a mortgage application. Needing a letter of explanation isn't a cause for panic, but it's something ...

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.

If your lender asks for a letter of explanation, you'll want to state what the issue is and, if needed, describe how it was resolved. You won’t need to write a long letter – just stick to the ...

Promptly providing a letter of explanation to your lender can help expedite the loan process and move you one step closer to closing. If you don’t, your loan closing could be delayed or even denied.