Valued Member
Posts: 33
Registered: ‎12-15-2011

NAVchek usage before mortgage app

Is using the Navchek LOC considered as overdrafts for underwriters? I have used it and kept it a small balance. Mainly because I didn't count it as overdrafting. Will the lender see it that way? I want to apply in a few months and will not use it until I apply. Is this gonna stop me from getting a home loan?

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Current Scores: TU - 679 (02/21/13) EQ - 663 (02/23/13)
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Valued Contributor
Posts: 3,406
Registered: ‎12-19-2012

Re: NAVchek usage before mortgage app

There have been some members here that have been denied because the underwriter considered overdraft protection usage as a bounced check. You will want to have detail bank statements along with a statement showing your overdraft LOC as well as a detailed explanation on why you had to use it. Depending on how old the last usage was, it may not count, but I would definitely pay the balance off before you apply.
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Valued Contributor
Posts: 1,062
Registered: ‎05-26-2010

Re: NAVchek usage before mortgage app

This came up for me as I was working to qualify through NACA.  I wrote a letter of explanation stating that I believed this was a normal facility offered by the bank but would stop allowing overdrafts.  Basically they considered any covering of overdrafts from Navchek an overdraft.  I just deposited Navcheks into my USAA account if I needed to draw funds.  Now for NACA you submit bank statements every month, another lender may just look at a lst two or three.


I'd say stop triggering automatic draws now.  If you get questioned an LOE should handle it, strengthened by the demonstrated period without covering draws.

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Starting Score:11/16/2009 EQ 566 11/16/2009 TU 538
Interim Score: 12/27/2012 EQ 683 09/17/2012 EX (lender) 670 1/01/2013 TU 701
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Established Contributor
Posts: 1,011
Registered: ‎04-08-2012

Re: NAVchek usage before mortgage app

This a very good question.

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