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Established Contributor
Posts: 516
Registered: ‎09-25-2009
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Re: Bounced checks hurt my approval

Not really ask the bank if they have a courtesy removal, sometimes they can remove up to 1-2 overdrafts per 6mo-year.  I don't know exactly how many overdrafts you have.


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Valued Contributor
Posts: 1,146
Registered: ‎11-30-2012
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Re: Bounced checks hurt my approval


jadeite788 wrote:

Not really ask the bank if they have a courtesy removal, sometimes they can remove up to 1-2 overdrafts per 6mo-year.  I don't know exactly how many overdrafts you have.


While the bank may honor a courtesy removal, all that does it provide a refund for the fee they charged for the overdraft, they will not remove the record of the overdraft from your bank statement. Trust me, I know.

Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012
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Re: Bounced checks hurt my approval

+1
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Frequent Contributor
Posts: 263
Registered: ‎08-14-2011
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Re: Bounced checks hurt my approval


Jonsey62 wrote:

. . . .

 

IThe persoon who told me I couldn't get approved with over 2 overdrafts within a year was with Quicken Loans.  I have heard it depends on the Underwriter.  Is this true?

I also was working with someone at PNC.  Maybe they are looking at me closer because I am self employed.


Man, I've been looking at recent loan rates onlin on Bankrate's site and I wouldn't touch Quicken with a 10ft pole! They are 1/2 to 3/4 of a point higher than others over the same time period.

I picked my Mortgage Broker by checking for those with the lowest rates and fees on Bankrate.  Just a thought.

 

 

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Super Contributor
Posts: 6,031
Registered: ‎03-06-2010
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Re: Bounced checks hurt my approval

[ Edited ]

I agree about not using Quicken. Even if their rates were competitive, their process is awful. Quicken has a different type of business model where they don't really have a LO, just telephone application takers. The sole job of the phone rep is to take that application and the fee (on your credit card). Once you give up the fee, its impossible to get it back even if you withdraw your application right away.

 

The phone reps have very little knowledge of loans and underwriting. The file has to eventually get to an underwriter, but there could be large red flags for anything obvious (DTI/employment/scores etc) and it won't be noticed until underwriting because it's not the phone rep's job to review. The problem with this is the applicant might be approvable at a future date with a few adjustments but you will never know that with a Quicken Loan (or even BOA or Wells) type process.

 

It is far better to make application with a good LO with a mortgage broker or mortgage banker because they know what the underwriter needs to approve a deal and if there is an issue that can be fixed or improved, they will tell you what and how to do it so you can make the application when you are ready. You get good specific information about your situation. You don't get that with the business model that has phone reps as their front line.

 

I have seen people enter into a contract with a bogus pre-approval issued by Quicken (before u/w) or Wells or BOA and those people end up just wasting their time and their money because they never can close with the outstanding issue. If they had gone to someone more knowledgeable up front, they could fix the issue and then go out to buy when they are truly ready. I don't blame the buyer because most don't know the criteria. I blame the mortgage person for not knowing how to take a proper mortgage application when it is their business to know.

Member
Posts: 5
Registered: ‎04-19-2008
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Re: Bounced checks hurt my approval

I was recently approved with Bounced checks on one of the statements I had to give our Loan Officer....  He just asked for a letter of explation...  Make it simple...  You should be fine if you Debit Ratio is good

New Visitor
Posts: 1
Registered: ‎01-14-2014
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Re: Bounced checks hurt my approval

Sorry to hear that! Were the bounced checks prior to your preapproval or did this occur while you were in the process of buying your home?

Senior Contributor
Posts: 3,455
Registered: ‎11-30-2007
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Re: Bounced checks hurt my approval

I had FOUR right before closing.  I paid a bill for $1,000 and entered it as $100.  It Happens.  Didn't even ask me for an explanation.

 

Of course, this was with Pulte Mortgage and I was building w/Pulte.  May be different. 

 

Sheesh, sometimes life happens.

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