Credit Inquiry Explanation Letter
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1Credit Inquiry Explanation Letter
To process your loan quickly, it’s important that we have an accurate representation of your financial obligations so we can
determine if you qualify for this loan. Each time someone requests your credit report, an inquiry is noted. The most common
reason this occurs is in connection with an application for credit such as a mortgage loan, auto loan, credit card, etc.
During the loan application process, we continually monitor your credit activity and may pull a new credit report prior to
closing on this loan. New accounts and inquiries can impact your loan approval and may represent a change in your financial
obligations. You must qualify with any new accounts and will be asked to explain any additional credit inquiries. To do so, we
require you to provide accurate information about your financial obligations.
What we need you to do:
1. Review the Liabilities Section of your Loan Application. If you have an account that is not listed on your loan
application, you must disclose it to us on this Explanation Letter by completing the requested information below.
Remember, any additional debts or obligations disclosed on this Explanation Letter or undisclosed, can impact your
loan approval.
2. Review the inquiries listed below that appeared on your credit report at the time you submitted your loan
application. If any inquiries within the last 120 days resulted in a new account, debt, payment obligation, etc., please
complete the information requested below. Please also provide a billing statement indicating the balance owed and
monthly payment to expedite your loan process.
By signing this Explanation Letter, you certify the liabilities section of your loan application and additional information
regarding your inquiries below is accurate and complete. Your failure to do so may result in civil liability or criminal
penalties.
Has new
If you answered
If you answered
Credit
Creditor’s
Reason for this inquiry:
debt been
YES to new
YES to new
Inquiry
NAME:
established
debt, please
debt, please
DATE:
with this
indicate
indicate
creditor?
BALANCE:
PAYMENT:
Y or N
Y or N
Y or N
Y or N
____________________________
_________
______________________________
_________
Borrower
Date
Co- Borrower
Date
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Parent category: Letters