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New Visitor
Posts: 1
Registered: ‎09-07-2009
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Overdraft and getting a mortgage

Hello all: We are in the end stages of closing on our home on sept 25th and my DH has an overdraft on his acct from friday but we have several accts and the acct for the mortgage has plenty of money. Will they deny us final approval cause we got conditional approval last week. Please help!
New Contributor
Posts: 65
Registered: ‎06-19-2007
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Re: Overdraft and getting a mortgage

The same thing happened to me when we got our house and were waiting for final approval. It didn't hurt us at all.
Senior Contributor
Posts: 3,299
Registered: ‎04-22-2008
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Re: Overdraft and getting a mortgage

Imagine your file to be split into two parts.  The good, and the bad.  A NSF right before close is bad.  It alone is enough to make an UW deny you, but not usually.  BUT, if your file already has plenty of bad stuff (recent lates, high DTI, borderline FICO...etc) then the NSF could be the last straw.   If you have a fairly clean file you should be OK.  Also, different UW can be different.  The investor buying the loans may be as well.  The investor may have a stipulation for things like no overdrafts/nsf in past 30 days, etc.

 

So, generally, if the file is clean an NSF is no big deal.  If a file is so/so you will probably be OK.  If the file is weak, you may have a big problem..

 

It can also matter what the NSF was and what spending patterns they see around it.  IN general though, it is more a pattern of NSF that will get you booted, not a single one.

Frequent Contributor
Posts: 388
Registered: ‎09-09-2008
0

Re: Overdraft and getting a mortgage

This close to closing, it's doubtful that they would even find out. You've probably already provided bank statements if they wanted them. When does your account statement process for the month? If you're asked for another statement and it would be on there, just tell them you haven't received it yet and ask if they can do a verification of deposit. That gives them a snapshot of that day's balance, and the average balance over the past 30 days.
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