Mortgage LOX Maker: Large Deposit Letter
Make your own Letter of Explanation (LOX) for large bank deposits. Explain unusual deposits in your bank account for mortgage applications. Generate instant PDFs for your lender with digital signature capture.
Your Information
Letter Preview
I, {{borrowerName}}, confirm that the deposit of ${{amount}} into my {{depositAccountType}} account on {{depositDate}} was from {{depositSource}}.
{{depositExplanation}}
I certify that the above information is true and accurate.
{{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
When To Use A Large Deposit Letter
Tax Refund Deposit
You received a larger-than-usual tax refund and deposited it into your account. This commonly happens when you have significant deductions, credits, or withholdings.
Work Bonus or Commission
Your employer paid you a bonus, commission, or profit-sharing payment. These payments often appear as large deposits since they're separate from regular payroll.
Personal Property Sale
You sold a vehicle, jewelry, electronics, or other valuable items to raise money for your home purchase. Keep receipts and documentation of the sale.
Family Financial Gift
Family members gave you money to help with your down payment or closing costs. You'll need a separate gift letter for this situation.
Insurance or Legal Settlement
You received money from an insurance claim, legal settlement, or court judgment. These payments can be substantial and require documentation.
Common Scenarios Requiring Multiple Letters
Severance Pay + Employment Gap:
- Use this large deposit letter to explain severance pay deposits
- Use our employment gap letter to explain the unemployment period
- Use our source of funds letter to document the severance as income
Family Gift + Gift Letter:
- Use this large deposit letter to explain the gift deposit
- Use our gift letter to confirm it is a gift, not a loan
- Use our source of funds letter to document the gift source
Property Sale + Source Documentation:
- Use this large deposit letter to explain the sale proceeds
- Use our source of funds letter to document the sale transaction
- Keep sale receipts and contracts as supporting documentation
How to Use This Large Deposit 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 |
|---|---|
| Bank statements showing the deposit | Confirms the deposit amount and timing in your account |
| Tax return or refund documentation | Proves the source was legitimate tax refund money |
| Sale receipts or contracts | Documents that you sold assets to generate the funds |
| Gift letter (if from family) | Confirms family gift and that no repayment is expected |
| Insurance settlement documentation | Proves legitimate insurance claim or legal settlement |
Frequently Asked Questions
What deposit amount triggers a large deposit letter?
Most lenders want explanation for deposits over $1,000 that can't be explained by your regular payroll or known income.
When in the loan process will I need a large deposit letter?
Your loan officer will request a large deposit letter during underwriting if there are unexplained deposits in your bank statements.
Is a large deposit letter always required?
It depends on your lender and the deposit amount. Some lenders request letters for any unexplained deposit over $500.
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