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Old 08-22-2008, 10:13 AM
 
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How badly is one's buying power affected in the eyes of the underwriter if, within the past year, there was an overdraft charge on the bank statements?!
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Old 08-22-2008, 12:26 PM
 
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Underwriters hate overdrafts, especially if you are getting some low down payment loan like FHA. However, you generally only need 2 most recent months bank statements. So if the last 2 months are clear you should be fine.
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Old 08-22-2008, 07:06 PM
 
Location: Fort Myers, FL
1,286 posts, read 2,594,674 times
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balance your budget and spend more responsibly.
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Old 08-23-2008, 11:01 AM
 
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Thanks guys. Recent months are good.
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Old 08-25-2008, 03:35 PM
 
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Would overdrafting 2 times in the last two months make your loan get denied? We have good credit and assets and are getting an fha loan. It just happens that my wife gets paid weekly and I get paid bi-monthly and her payday fell 2 days after 2 bills automatically came out of our account. However her check was deposited two days later and our account isn't negative at the end of the month. We are having a house built and probably wont be closing for about 1 1/2 months.
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Old 08-25-2008, 05:24 PM
 
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I am building a house as well and I had some overdraft fees on my checking account. When I got my pre-approval one fo the conditions was absolutely no more NSF charges.
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Old 08-26-2008, 08:01 AM
 
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Quote:
Originally Posted by dbarrett5381 View Post
Would overdrafting 2 times in the last two months make your loan get denied? We have good credit and assets and are getting an fha loan. It just happens that my wife gets paid weekly and I get paid bi-monthly and her payday fell 2 days after 2 bills automatically came out of our account. However her check was deposited two days later and our account isn't negative at the end of the month. We are having a house built and probably wont be closing for about 1 1/2 months.
It certainly could. Are you going minimum down, have high side DTI and no reserves after closing? If so you could have a problem.
As mentioned above, underwriters hate to see NSF.
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Old 08-26-2008, 09:46 AM
 
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I am doing 3% down, 30% housing DTI 34% total DTI and will have about 4 Months reserves.
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Old 08-26-2008, 02:22 PM
 
4,542 posts, read 11,544,610 times
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Quote:
Originally Posted by dbarrett5381 View Post
I am doing 3% down, 30% housing DTI 34% total DTI and will have about 4 Months reserves.
Underwriter should be able to overlook your ODs with the above scenario. Just in case how were the 2-6 months prior to the ODs?
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