NSF

[Anonymous]

I have a NSF on my bank statement last month however I had the money in my savings account when this occured but was ubable to transfer funds.  Will this stop me from getting preapproved?

Message Edited by crockett2 on 09-21-2008 09:18 PM

[Anonymous]

Call the bank and ask them to reverse the NSF fee.  You never know if they will do it until you ask.

[Anonymous]

When the LO or bank asks for bank statements, have them pull VOD (verification of deposits).  All they need the statements for is to verify income, etc.  The VOD does that.  Either way, as long as it was just once and you have an explanation this would not likely kill a deal.  Now, this along with low scores, high DTI, more recent credit issues (24 months or sooner) could be the proverbial straw that broke the camels back.  In that case and if they won't use VOD's wait 2 months unitl you have 2 months statements that have no NSF fees.

[Anonymous]

thanks for the replies.

Are there times when the LO or underwriter won't accept VOD statements? 

[BrianB_The_Loan_Professor]

Yes some banks require bank statements but more will accept VOD's

Good Luck

Brian

[Anonymous]

Are your two accounts at the same bank? When I have a savings account, I link the two so that if one is going to be overdrawn, it automatically pulls the $$ from the other account - no NSF resulting.

Call up your bank and tell them you thought they were linked and that the above was going to occur. My bank had reversed my NSF because I had asked for my accounts to be linked but somehow they didn't make that happen...

[thegrapelady]

I know this has nothing to do with NSF, but when you submit the last two months of bank statements for the loan process, do they look at your actual purchases and ask you about them? Like why you spent so much money at the vet? or why you wrote a check for a certain amount?

[Anonymous]

Nobody asked me anything about transactions on my bank account other than a $1000 deposit that I had to explain was from a previous house offer escrow account being refunded...

[thegrapelady]

I am just curious because I have a 2K deposit from August because I half leased my horse out and she pays me every 6 months, and I paid a payday loan for my little brother for $800. I am hoping they don't get concerned about these items... but I guess if needed there is a good paper trail.

[Anonymous]

They will be concerned on those large amounts. Be prepared to provide receipts and/or letters and any other back up documentation.