Budget Letter of explanation

[Kimberly68]

I would like an example of a mortgage budget letter. The under writer is asking for it.

[Revelate]

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@Kimberly68 wrote:
I would like an example of a mortgage budget letter. The under writer is asking for it.

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That's strange, what'd your LO suggest you write?  It would be reasonable to ask if you didn't get any guidance imo.

My theory would just do a quick monthly budget exercise and document the line items

Income: $XXXX

Mortgage Payment: -$YYYY

Gas: -$AAA

Grocers: -$BBB

Utilities: -$CCC

Car payment: -$DDD

<etc for major bits>

= monthly free cash flow.

Out of curiosity what was your DTI?

[Anonymous]

UW can ask for these if DTI is very high (50%+). They want to know if you will soon be getting a raise, if you have additional income in the household that is not is not on the loan, any major expenses being eliminated soon, etc. Usually helps to explain if you have a clean housing/credit history as well. Your LO should help walk you through this.

[Kimberly68]

Our DTI is low very low actually but we moved to another state and I was initially going to keep my job but the rules changed so I found something local. I dropped 30k in income but I'm now 90% disable and work part time and the house isn't that much. I wrote a letter with our responsibilities and still had 1800 left over per month.