Armed with that you can give them an educated counter-offer with an explanation of your numbers.

Don’t get too caught up with emotional explanations; stick to the facts and dated timeline. 

Typically, for most of our clients we work with in similar situations, your lender will ask for a letter of explanation as to why you are moving. 

If you already own a home, most under writers will want to see that this new home is 100 miles + from your current home or will require letter of explanation as to why you are moving. 

I would argue that the market is willing to pay more because of asymmetries, and among other things, premiums for certain qualitative geographical factors (Hawaii has a nicer climate than Cleveland Oh, for example)- not because a family in Cali is "more able to pay" than a family in Kentucky. 

Thanks for the detailed explanation, Lennon. 

I have seen them used a lot and inferred an idea of their meaning but this explanation helps.

It all comes down to a unique scenario and that is why we as Banks or you as a lender require LOX, LOE's Letter of explanations!

Here's a very basic explanation to get your juices flowing:Assume a house costs $200,000 and rents for $1,500.

As a deduction, it stated -$344 for "refund per MD law change" and -$6 with no explanation.