Planning to purchase a home? It must be a really exciting time and a bit daunting as well because you have a take care of all legal formalities. You may require many supporting documents to purchase a home specially if you are a self employed, new to credit, or lacking strong financial history. A character reference letter for home purchase is one of the supportive documents that you may need while purchasing a home.
The purpose of attaching a character reference letter is to build more credibility, trust, and let a seller or landlord or mortgage lender knows you’re a financial stable person and will make the payments timely. In this post, we’re covering the information related to the character reference letter for home purchase, so let’s get started.
Purpose of Writing a Character Reference Letter for Home Purchase?
The whole purpose of writing this character reference letter is to offer insights into the buyer’s character, reliability, financial habits, and general suitability as a homeowner.
Following are some of the instances where you may need this letter:
- This letter is useful when the buyer has a limited credit history.
- Self employed people or people who have recently changed their jobs may need this letter as a supportive document.
- A mortgage lender may ask for this letter in order to have a look at the buyer’s character, reliability, financial habits.
This document is not any financial document, it’s a supportive document that tells a bit about the buyer’s character and financial credibility, it’s used as a supportive douments during the home-buying process.
Now the question comes who can write this letter?
A random person cannot write this letter. This letter will hold authority if it comes from someone who can speak genuinely and credibly about the buyer’s character and reliability. Following are some of the people who can write this letter:
- a current or former employer
- a business associate or client
- community leader or church official
- a long-time friend or mentor (ideally not a relative)
- a landlord or property manager
Only a person who knows the buyer for a certain period of time is able to onfidently describe their behavior, trustworthiness, and ability to meet financial obligations.
Sample Character Reference Letter for Home Purchase
To whom it may concern,
I am writing this letter in support of {Name} who is planning to purchase a home at {location}. I have had the pleasure of knowing {name} for the past {years} as his/her {boss, colleague, mentor, landlord, etc}. I’ve known him enough to speak about his character, responsibility, and trustworthiness.
Throughout the time I have known him, I have always find him to be a hard working and law abiding citizen. He works at a reputed organized and very well to do financially. He has been financially taking care of his family for years now and now he is ready to purchase a home. I believe that {Name} can take the responsibilities as a homeowner very well.
Apart from the financial stability, {Name} is a person of good morale and character. I believe they will be a valuable addition to any neighborhood and will treat their new home with care and dedication.
I strongly support {Name} in their effort to purchase a home and believe they will be an excellent and dependable homeowner. Please feel free to contact me at {your phone number} or {your email address} if you need any additional information.
Thank you for your time and consideration.
Sincerely,
{Sender}
Final Thoughts
A character reference letter for home purchase may not be a mandatory document but it a supportive document that can create an impact specially when you are applying for a mortgage. If you are looking to purchase a home or secure a mortgage loan then make sure to have a character reference letter in order to strengthen your application.
We have already shared the editable sample letters above. Use the sample letter to create a character reference letter easily without any errors or mistakes.