A “Sample Letter to Mortgage Company Regarding Schedule C” is a letter you send to your mortgage lender. It provides details about your self-employment income. You typically need this letter when applying for a mortgage. It’s also needed during a mortgage modification or refinance.
This article is your guide. We’ll share various sample letters. These samples cover different scenarios. They will help you craft your own letter.
We’ve got you covered. Our templates make the process simple. You can easily adapt them to your specific situation. Get ready to write your letter with confidence.
Sample Letter To Mortgage Company Regarding Schedule C
**Sample Letter To Mortgage Company Regarding Schedule C**
[Your Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
Mortgage Company Name
Mortgage Company Address
**Subject: Regarding Schedule C Income Verification**
Dear [Mortgage Company Contact Person or Department],
I am writing to provide clarification regarding my Schedule C (Profit or Loss from Business) as part of the documentation for my mortgage application/loan.
As a self-employed individual, my income is reported on Schedule C of my tax return. I understand that you need to verify this income to assess my ability to repay the mortgage.
To assist in your review, I am including the following documents:
* Complete copy of my Schedule C for the past [Number] years (e.g., 2 years).
* Copies of relevant bank statements showing business income deposits.
* [Optional: Explanation of any significant fluctuations in income from year to year.]
Please note that the net profit figure on Schedule C reflects my gross income less business expenses. I am available to answer any questions you may have about these expenses or any other aspect of my Schedule C.
I am committed to providing you with all the necessary information to process my mortgage application quickly and efficiently.
Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
html
How to Write Letter To Mortgage Company Regarding Schedule C
1. Crafting a Compelling Subject Line
The subject line is your initial foray. It needs to be pithy and precise, immediately signaling the letter’s purpose. Avoid ambiguity; specificity is paramount. Consider phrases like:
- Subject: Schedule C Explanation – [Your Name] – Loan Application [Loan Number]
- Schedule C Clarification Required – [Property Address] – [Applicant Name]
- Documentation for Self-Employment Income – [Loan Account Number]
2. The Salutation: Setting the Tone
Begin with a respectful salutation. While “To Whom It May Concern” is acceptable, a direct address adds a personal touch. If you know the loan officer’s name, leverage it. Otherwise:
- Dear [Loan Officer Name],
- Dear Mortgage Department,
- Greetings, [Mortgage Company Name],
3. Introductory Paragraph: Conciseness is Key
The opening paragraph should succinctly state your objective. Evade verbose introductions; get straight to the point. Mention the loan application and the Schedule C.
- “I am writing to provide supplementary information pertaining to my Schedule C, as requested for loan application [Loan Number] concerning the property located at [Property Address].”
- “This letter serves to elucidate details within my Schedule C, submitted as part of my mortgage application. Please find the following clarifications helpful.”
- “In response to your query, I am providing a detailed exposition of my Schedule C, relevant to my self-employment income provided for mortgage approval.”
4. Body Paragraphs: Dissecting the Schedule C
This is the nucleus of your letter. Deconstruct each pertinent section of the Schedule C. Explain any anomalies or inconsistencies with perspicacity. Substantiate your claims with empirical data.
- Address Revenue Fluctuations: “The apparent dip in revenue during [Month] was attributable to [Specific Reason – e.g., a temporary market downturn, planned vacation]. This was a transient anomaly, not reflective of overall business performance.”
- Explain Significant Expenses: “The substantial expenditure listed under [Expense Category] reflects [Detailed Explanation – e.g., a necessary equipment upgrade, a one-time marketing campaign]. Supporting documentation is available upon request.”
- Clarify Net Profit Calculation: “The net profit figure accurately represents my earnings after deducting all legitimate business expenses, as delineated in the Schedule C. It forms a reliable basis for assessing my income stability.”
5. Providing Substantiating Documentation
Mention any accompanying documentation that ratifies your explanations. Proffer to furnish additional records if needed. Be proactive in averting further inquiries.
- “Attached, please find [List of Documents – e.g., bank statements, invoices, profit and loss statements] to further corroborate the information presented herein.”
- “I have enclosed [Document Name] as supporting evidence for [Specific Claim]. Additional documentation, such as [Example Document], is available upon your request.”
- “Supplementary schedules and financial records are available for scrutiny should you require more detailed analysis. Please advise on your specific needs.”
6. Expressing Gratitude and Contact Information
Express appreciation for their time and consideration. Reiterate your contact information, ensuring accessibility for expedient communication.
- “Thank you for your time and consideration. Please do not hesitate to contact me at [Phone Number] or [Email Address] should you require further clarification.”
- “I appreciate your meticulous attention to this matter. I can be reached at [Email Address] or [Phone Number] for any supplementary information you may need.”
- “I am grateful for your understanding. Feel free to contact me via email at [Email Address] or by phone at [Phone Number] with any further queries.”
7. The Closing: A Formal Farewell
Conclude with a formal closing. Maintain a professional demeanor until the very end.
- Sincerely,
- Respectfully,
- Best regards,
[Your Full Name]
[Your Phone Number]
[Your Email Address]
html
Frequently Asked Questions: Sample Letter to Mortgage Company Regarding Schedule C
This section addresses common inquiries concerning the process of providing a sample letter to your mortgage company regarding Schedule C income verification. Understanding the requirements and proper formatting can expedite your mortgage application.
1. Why does my mortgage company need a letter regarding my Schedule C?
Mortgage companies require this letter to gain a clearer understanding of your self-employment income reported on Schedule C, allowing them to assess the stability and reliability of your income for mortgage qualification.
2. What information should the sample letter include?
The letter should detail the nature of your business, the length of time you have been self-employed, and any significant factors impacting your income, such as one-time expenses or changes in business operations.
3. How should I format the sample letter?
The letter should be professionally formatted, dated, and signed. It should include your contact information, the mortgage company’s address, and a clear and concise explanation of your Schedule C income.
4. What documentation should I include with the letter?
Include copies of your Schedule C forms from the past two years, as well as any supporting documents like bank statements or profit and loss statements that can further validate your income.
5. Should the letter be written by me or my accountant?
While you can write the letter yourself, a letter from your accountant may carry more weight with the mortgage company, as they are considered a qualified financial expert.