What is the purpose of letter of explanation?

Asked by: Tess Walker  |  Last update: December 23, 2025
Score: 4.3/5 (35 votes)

A letter of explanation is simply a tool that helps your lender's team understand your financial situation more fully. Giving exactly the information they request with the appropriate level of detail helps the team reviewing your application truly understand your financial picture.

Is letter of explanation necessary?

Letter of explanation

You should include this letter if you decide to apply for a study permit, even if you don't have to get a study permit for your program.

What is the meaning of explanation letter?

An explanation letter at work is a formal printed letter or email written to explain something that occurred, to answer an inquiry or provide missing information. Clients, contractors, team members or students may write this type of letter to provide information and inform other individuals about situations.

How to write a proper letter of explanation?

The key to writing a great letter of explanation is to keep it short, simple and informative. Be clear and write with as much detail as you can since someone else will need to understand your situation.

Does a letter of explanation need to be signed?

A letter of explanation is a written, signed and dated document you prepare to address questions a mortgage lender may have about your loan application.

How to write PERFECT SOP for 🇨🇦 Canada🇨🇦 Study Visa | MY OWN STATEMENT OF PURPOSE

41 related questions found

What is required in a letter of explanation?

While the content of the letter will change depending on your situation, be sure to: Provide all details the best you can, including correct dates and dollar amounts. Explain how and when all situations were resolved. If they are not resolved, explain that as well.

What is the difference between letter of explanation and statement of purpose?

Comparison between LoE and SOP: Content: LoE addresses specific queries, while SOP delves into personal motivations and aspirations. Tone: LoE is more formal and concise, whereas SOP allows for a more expressive and personal tone.

How do you introduce yourself in a letter of explanation?

These steps will help you create an effective self-introduction:
  1. Summarize your professional standing. The first sentence of your self-introduction should include your name, job title or experience. ...
  2. Briefly explain your work experience and key accomplishments. ...
  3. End with a lead-in to the next part of the conversation.

How do I end a letter of explanation?

How to End a Letter: 12 Useful Farewell Phrases
  1. Sincerely. Sincerely (or sincerely yours) is often the go-to sign off for formal letters, and with good reason. ...
  2. Best. ...
  3. Best regards. ...
  4. Speak to you soon. ...
  5. Thanks. ...
  6. [No sign-off] ...
  7. Yours truly. ...
  8. Take care.

What is the structure of an explanation letter?

Here is how to write an explanation letter: Address your letter: Write the date and lender's address at the top of the explanation letter, then address the lender or lending institution. State your financial situation: Be upfront about your financial issues.

What is the purpose of an explanation?

An explanation is a rationale in which the reason presents a cause of some fact represented by the conclusion. Its purpose is to help us understand how or why that fact occurs.

How do you respond to a letter of explanation?

Dear [Name], Thank you for your letter explaining the reasons for not achieving the [target/goal] set for [period]. I appreciate your candor and willingness to address the challenges faced. After reviewing your explanation, I understand that [briefly acknowledge the circumstances].

What is a professional letter of explanation?

Formal Letters, also called Business Letters or Professional Letters, are letters that are written in a strict and specific format. Formal letters are naturally much more formal in style than informal/friendly letters.

What is the general purpose of a letter?

The main purposes of letters were to send information, news and greetings. For some, letters were a way to practice critical reading, self-expressive writing, polemical writing and also exchange ideas with like-minded others.

How many pages should a letter of explanation be?

Here are some simple rules to follow to write an effective Letter of Explanation; Should be short, concise and factual. Only provide truthful and accurate information. Keep it to 1-2 pages.

What is official letter explaining?

Official Letter: This type of letter is written to inform offices, branches, subordinates of official information. It usually relays official information like rules, regulations, procedures, events, or any other such information. Official letters are also formal in nature and follow certain structure and decorum.

What does PS mean in a letter?

So, what does PS stand for? This is an abbreviation that stands for postscript. It comes from the Latin word postscriptum. When translated, this word means “written after.” Therefore, it should come as no surprise that anything that follows the PS comes after the rest of the letter is already done.

How do you start an explanation letter?

How to write an explanation letter
  1. Choose a letter format. Start by deciding the format for your letter. ...
  2. Explain the situation. To begin writing this type of letter, you might explain the situation or circumstance and any contributing factors. ...
  3. Take responsibility and accountability.

How do I write a letter of explanation for a violation?

3 Tips for How to Write a Violation Letter Template
  1. Tip 1: Start with a Clear and Professional Salutation. Tip 2: Clearly State the Violation and Provide Supporting Evidence. Tip 3: Outline Consequences and Provide a Path to Resolution.
  2. Decide How to Record Violations.
  3. Frequently Asked Questions (FAQs)
  4. Conclusion.

How do you start a letter explaining yourself?

You can follow these steps to write about yourself:
  1. Introduce yourself .
  2. Include the most relevant professional experience.
  3. Mention significant personal achievements or awards.
  4. Introduce personal details.
  5. Use a casual and friendly tone.

What is the best sentence to introduce yourself?

Introducing yourself
  • "Hi, I'm [Your name]. Nice to meet you!" ( ...
  • "Hello, I'm [Your name]. ...
  • "Hey, I'm [Your name]. ...
  • “Hi, I'm [Your name]. ...
  • "Good [time of day], my name is [Name], and I am the [Job Title/Role]." ( ...
  • "Hello, my name is [Your Name], it's great to meet you." ( ...
  • "Pleased to meet you, I'm [Your Name]." (

How to end a letter formally?

Use 'Yours sincerely,' when writing to a named person. Use 'Yours faithfully,' when using the 'Dear Sir/Madam' greeting. Use the semi-formal 'Best regards,' or 'Kind regards,' if you wish the tone to be slightly less formal.

What is the letter of purpose for?

What is a Statement of Purpose (SOP)? A Statement of Purpose (SOP), also known as a research statement or a letter of intent, is directed to the admission panel. It discusses your career path, interests, professional contributions, goals, and motivations for pursuing a specific program.

How long should a sop be?

“A statement of purpose should be between 500 and 1,000 words,” Pierce says, noting that it should typically not exceed a single page.

What does purpose of the letter mean?

You can think of Purpose as the 'reason for writing' or 'why you are writing'. Importantly, it must be clear to the reader and personalised to the situation. In most cases, the Writing task is the best way to understand the purpose of your letter.