ACCOUNTS, OVERDRAFTS, AND LOANS ...

[shawneet]

Thanks, fabadvice.  It's funny because our savings account is looking pretty darn good right now.  We don't touch it for anything.  We only make deposits into that because we're strictly using that $ for DP, closing, etc. any thing related to the house.  Actually, I think those deposits into that savings is what has had my calculations off with my own personal checking account because we've been "radically" saving lately ... after each pay period depositing into the savings waaay more than we normally would put away for savings on any one pay period.  I'm going to pray about this last OD and prayerfully not get anymore before having to turn over the statements to the LO again ... perhaps in July/August ... BTW ... our OD doesn't even pull from our savings at all ... the bank pays the OD and then charges $35 in return ... but the savings money is NEVER touched ...

[shawneet]

Ok guys ... Bear with me here.

Soooo, the loan processor emails me two days ago and asks for some dox so that they can move my file on up to the underwriter.  Wait!! Not yet!! (I'm screaming in my head) #1 was hoping you would ask for these statements in late July or August and they would look very "purdy" without ANY Overdrafts on them, and #2, if I send them now, I'll have to send one that shows an overdraft fee and my 2nd statement (2 statements requested) won't close until the 25th or so of this month and that's the one that I want to send because I was doing some good money management and it is "presentable".  I don't want to hold up sending any documents to her but I also want to present our case in the best light.  I would prefer to send May and June statements, rather than APRIL and May statements.  UUgghh, this process is driving me bananas.  It's not that we didn't have any $$ to cover the OD because we've had $ sitting in our savings acct for months now.  But our OD just pays the charge and the bank then charges us ... our savings acct is never even touched by the bank to pull the funds.  So what do you guys suggest I do?   All of our money that we're going to be using for the house is in the savings ... we only make deposits into that account.  We do use our checking accounts for payroll deposits, bill paying, eating out, etc.  The ODs were just the result of trying to withdraw funds to have actual "cash" on hand (because I always use the debit card) and neglected to account for some debits (gas, etc.) that came thru.  I know that if they see this they're going to want a LOE ... but I would rather her only see one statement.  My year to date ODs have been 5 with one reversed by the bank. 

Also, just a side note ... she also asked for a copy of the EM check that we gave the builder.  Well, my mom gave us the money for the deposit (we DID have it in savings, she just wanted to give us the money to help us with the house and not have us touch our savings money).  So, she withdrew from her bank and gave my hubby cash which he in turn got a money order for and gave to the builder.  We do have copies of the money order as well as the builder made copies and gave us a receipt for the payment.  So, that EM can be tracked.  Do you think that the lender/UW (or the Oz...lol) will have a problem with that?  It wasn't a loan either ... it was a gift. 

Any advice you guys can lend will be greatly appreciated.   I just want to pinch myself and wake up in my new home ... fast forward past all the technicalities please!! 

[StartingOver10]

Talk to your LO. The loan is on hold until the information they requested is provided.

You will have to specifically discuss the EMD money. You will need to show the funds coming in from your Mother and a gift letter. I don't know if they will count those funds because you never actually deposited them into an account, did you? Your Mother may have to show her account where the funds were withdrawn, plus sign a gift letter for you.

[shawneet]

I'm anticipating having to get the gift letter, etc.  And that won't be a problem.  Yes, my mom withdrew the money from her account and gave it (cash) to my husband.  He then went and just got a money order for the deposit and took it to the builder.   She can pull her statement with the withdrawal transaction on it.  That won't be a problem and she doesn't have a problem signing a gift letter either.  

I really have gotten to the point where I don't care to even communicate with my LO (and now the processor is in the mix ... haven't dealt with her yet) because I have called her cell phone several times in the past and I always get her voice mail ... leave a message, no call back (only once)... send over emails, no response (only once and it's short, not very informative ... kinda, "everything is good").  I feel like I do all of the reaching out and initiating things.  Definitely no personal communication from her.  But when we first sat down with her, she was very down to earth, talkative, informative, and that's what made us go ahead and start the ball rolling ...   I guess I'll have to just give her a call.  I'm also waiting for another lender to get back from vacation in a week.  He was highly recommended and I would like to explain our whole situation to him and see what he can do for us ... 

I guess I will give her a call on Monday and see what she says about the bank statements and the situation of the earnest money.  I feel I'm always putting myself out there for this lady and she is hardly reciprocating at all ... 

[Amythyst]

For what its worth, and I'm sure each lender is different... but my lender was ok with my overdrafts because I have overdraft protection.  They said that's not really overdrafting if I have a line of credit for it.  She told me that they look for instances where I was actually charged an NSF fee ...which I did not have because I have the protection.  So, I dunno if yours would be the same ...

And a lot of mine are because of timing... IE:  the bill is due on the 28th and I don't get paid till the 30th.

[shawneet]

Amythyst, that's our situation exactly.  We have overdraft protection where the bank pays the overdraft amount but then we have to pay the fee.  I guess we could actually have it where if anything comes thru that's going to overdraw the account, then the bank could pull it from the savings but we don't have it set up that way.  The only activity that hits the savings account is only deposits.  And our case of the overdrafs is about the same thing ... timing.  A charge comes thru before a direct deposit or even I've pulled cash out to use and didn't remember a debit coming thru and had I left the money in there, it probably would have cleared no problem.  So, I don't know ...maybe it won't be a problem because it's not an NSF ... who was your lender, if you don't mind me asking?  Mine is Suntrust, btw.  And thanks so much for the input everyone ... I'm just really freaking out about this whole process ... seems like the underwriters control the "Accept" and "Reject" levers and you just pray when you're selected from the pile that you have an underwriter who does care about the people behind the loan paperwork and not just rejecting because of a few imperfections.  We don't have any earth shattering news on our CR ... just a late payment (not in the last 11 months, heading on 12 months) and some OD on the bank account ... no collections, no BK, chargeoffs, make decent money, hard working, just want a better home and schools for our kids ... I pray this process is positive for us and everyone else in the boat with us!!

[Amythyst]

We are doing new construction and using the builders preferred lender, C&F Mortgage.  Its a local place to us and they sell the loan off after the first month.  When we use our overdraft protection, we do not have to pay a fee for it.  Ours is actually a line of credit tied to our checking account... so, they just move money from that with no fees.  So, I'm not sure if the fee you pay would count against you. 

I agree with you though about the God like hammer of the underwriter.  Our process has been quite smooth but I'm always waiting for the horror story or the ball to drop or for something bad to happen... like oh, you actually need 20k to close instead of 16k but I'm assured that nothing like that will happen.  I am constantly asking my lender questions and getting clarifications and asking him things like "my loan isn't going to get denied at the last minute right?"  I had a BK in 2009 and a foreclosure in 2010 but have had spotless credit since then ... and oddly enough we made it through desktop underwiting, so I'm hoping it won't be too painful.  We are supposed to close August 30th.  And the loan processor just asked us for updated bank statements and paystubs... 

I'm a worry wart, so I will be freaking out about this till we get the keys.   It won't feel real until then.  But I would definately relax and just see what your lender says.  And sometimes a letter of explanation will be good enough. 

Good luck!