HELP! usda loan final approval

[Anonymous]

My husband and I both have middle scores of 627. We were pre approved for a usda loan and the underwriter is working on final approval right now. Today they requested copies of our bank statements and my 401k savings statement. The only thing Im worried about is that we dont keep all of our money in our checking account and i had 3 overdraft fees two months ago due to my incorrect balancing. Will this ruin my loan. I am so worried. Please advise me .

[ShanetheMortgageMan]

1 overdraft charge is usually fine, but when there is a pattern they will look to make sure all other payments were made on time during that period, and if that is the case, then it is usually fine too.  Along with the bank statements I'd write a letter of explanation so the underwriter doesn't get any ideas before they read what the real situation was.

[Anonymous]

Well, I just spoke with my LO and he said not to worry about sending my bank statements because they will get a Verification of Deposit. Does this seem right and also what exactly will they be looking for? a certain amount of money? My average balance is low  ($300) because we use cash for alot of our expenses. I thought with USDA I would be okay. Now Im thinking we should have been putting all of our cash in there. Is this bad or do you think we will be o.k.?

Skotti

[ShanetheMortgageMan]

A Verification of Deposit (VOD) just lists the current balance and a 60-day average, no actual transaction history.  If those two figures are close, then they won't require bank statements, but if the 60-day average is a lot lower than the current balance they'll probably want the bank statements to see what funds were deposited in there to see how the balance increased well above it's average.