Mortgage LOX Maker: Debt Paid Outside Closing Letter

Make your own Letter of Explanation (LOX) for debts paid outside closing. Confirm debt payoff to improve your mortgage qualification. Generate instant PDFs for your lender with digital signature capture.

No Registration Required100% FreeMortgage Lender-Approved

Your Information

Borrower Name*

Borrower Email Address*

Borrower Phone Number*

Lender Name*

Debt Type*

Creditor Name*

Account Number*

Payment Date*

Borrower Signature*

Signature Date*

Letter Preview

To: {{lenderName}}

I, {{borrowerName}}, confirm that my {{debtType}} with {{creditorName}} (Acct #{{accountNumber}}) was paid in full on {{paymentDate}} outside of the closing process.

Proof of payment is attached.

{{borrowerName}}
{{borrowerEmail}}
{{borrowerPhone}}

Borrower's Signature: {{signature:borrowerSignature}}
Date: {{signatureDate}}

Tips for Success

Keep explanations brief and factual
Attach supporting documentation when possible
Review all information before signing
Submit within 48 hours of your loan officer's request

Important Reminders

All information must be truthful and accurate
False statements may result in loan denial
Keep copies for your records
Contact your loan officer with questions

Borrower Name*

Borrower Email Address*

Borrower Phone Number*

Lender Name*

Debt Type*

Creditor Name*

Account Number*

Payment Date*

Borrower Signature*

Signature Date*

When To Use A Debt Payoff Letter

Credit Card Payoff

You paid off credit card balances to improve your debt-to-income ratio before closing.

Auto Loan Payoff

You paid off your car loan early to reduce monthly debt obligations for mortgage qualification.

Personal Loan Payoff

You eliminated a personal loan or line of credit to strengthen your loan application.

Student Loan Payoff

You paid off student loans to improve your qualifying income and debt ratios.

Collection Account Payoff

You paid off collection accounts or judgments to clean up your credit report.

Common Scenarios Requiring Multiple Letters

Debt Paid Outside Closing + Credit Recovery:

Use this debt paid outside closing letter to document debt resolution
Use our derogatory credit letter to address related credit issues
Use our source of funds letter to show current financial stability

How to Use This Debt Payoff Letter Generator

Gather Your Information

Collect all necessary details and supporting documentation before starting the generator.

Complete the Form

Fill out all required fields in the generator. The preview will update in real-time as you type.

Review and Sign

Review your letter for accuracy, add your digital signature, and download the PDF.

Submit to Your Lender

Send the completed letter to your loan officer along with any supporting documentation.

Supporting Documents Your Lender May Need

Document	What It Tells Your Lender
Payment receipts or bank transfers	Provides additional verification and context for your situation
Creditor payoff statements	Provides additional verification and context for your situation
Bank statements showing payment	Provides additional verification and context for your situation
Account closure confirmations	Provides additional verification and context for your situation
Updated credit report	Provides additional verification and context for your situation

Frequently Asked Questions

When will I need a debt payoff letter?

Your loan officer will request a debt payoff letter if you paid off debt after your initial loan application.

How does paying off debt help my mortgage application?

Paying off debt reduces your debt-to-income ratio, which may help you qualify for better loan terms.

How quickly can debt payoff letters be processed?

Most debt payoff letters are reviewed and accepted within a day of submission.

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