Letter of Explanation for Address History — Free Template

Underwriters typically ask about addresses that appear on your credit report but not on your application, addresses that differ between documents, and the history behind your current address. For each, explain your connection: a former residence, a relative's home you used for mail, a business address, a property you own or a simple reporting error.

Give approximate dates for when you lived at or used each address, and say whether you rented, owned or were staying with someone. If you own any other property, say so; the lender will need to account for it in your debts and assets.

If your credit report lists an address you've never had any connection to, it could be a data mix-up or a sign of identity theft. Say that you don't recognize it, then check your full reports from all three bureaus for accounts you didn't open. You can dispute incorrect addresses with the credit bureaus.

Update the address on your bank accounts, pay stubs and credit accounts if they still show an old one. Lenders like to see your documents tell the same story as your application.

A letter of explanation is a routine part of underwriting, not a sign that your loan is in trouble. If the underwriter needs more, they'll usually ask a follow-up question or request a specific document. Answer the new request directly rather than rewriting your whole letter.

If the item reveals something that changes your loan, such as a new debt from a credit inquiry or a deposit that turns out to be borrowed, the lender may recalculate your debt-to-income ratio or ask for more documentation. Being upfront from the start avoids surprises at closing.

If your loan is denied, ask your loan officer for the specific reason. Sometimes a different loan program, a larger down payment or waiting a few months to add more history solves the problem. Never change facts to fit the lender's requirements; misstatements on a mortgage application can have serious consequences.