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Underwriting Question

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Joteism
Regular Contributor

Underwriting Question

I'm preparing to apply for pre-approval and thought I'd ask a question about my bank statements..

 

Big chunk of my paycheck goes straight to my savings account, and only my fixed expenses and a little spending money goes to my checking accounts. However, in the past couple of months, I've had to move money automatically from my savings to my checking in order to cover debit card swipes. While the transaction line on the statement says "Overdraft transfer", it's just an account feature that transfers money from one account to another, when the funds are low. I don't get charged a fee, and the funds come out of my own account, as opposed to the bank extending me credit. Will this be a problem in underwriting? Should I already write a LOE for this?

 

4 REPLIES 4
DallasLoanGuy
Super Contributor

Re: Underwriting Question

i would go ahead and write it.

 

something like:  i have an overdraft feature that covers my checking account when I get low. Funds are transferred from my savings at no charge.
I use this convenience when I am too busy to transfer money.  No checks have been returned, and money was always available to cover spending... It was just in the wrong account sometimes.

 

 

Retired Lender
Message 2 of 5
DallasLoanGuy
Super Contributor

Re: Underwriting Question

you are basically telling the uw that you are not irresponsible with your money.... but that you use this auto transfer as a convenience,

 

Retired Lender
Message 3 of 5
DallasLoanGuy
Super Contributor

Re: Underwriting Question

short and sweet is best

 

Retired Lender
Message 4 of 5
Joteism
Regular Contributor

Re: Underwriting Question

Perfect. Thanks, DLG! And here I thought I might be able to get away without writing a single letter Smiley Happy

Message 5 of 5
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