showing bank statements for mortgage

[Anonymous]

What exactly are they looking for when they ask for your bank statements when getting a FHA loan? I read somewhere on here before that you if you have a good LO they will have you get a record of deposits instead of showing your statement if you have NSF on them. I am applying for a mortgage and I am receiving the down payment money from the county I live in and the closing cost from the city I am purchasing the house in. The mortgage has asked for a lot of paperwork from me, and I have submitted everything except my DNA but never my bank statement as of yet. Just wanted to know my options in case they do being that I have a NSF on my statement that has me worried. Thanking you in advance...

[Anonymous]

To avoid the NSF being an issue...ask your LO to do a VOD...Verification of Deposit...in exchange...

[BrianB_The_Loan_Professor]

agree - do not submit a bank statement with a NSF you will get denied if the UW catches it 90% of the time.

Brian

[Anonymous]

Thanks 2 both of you....I will have her do that!

[Anonymous]

When I bought a house many years ago there was one NSF on the 3 months of statements that I didn't realize was there because it had been automatically paid by the bank and I think at the time you got 3 of them in a 12 month period that wasn't charged for.  I was surprised when the LO pointed it out and I looked over the statement and found that my direct deposit paycheck was a day late.  It was NEVER late before and hasn't been late again in 15 years at the same company but wouldn't you know it...

She just had us write a statement explaining it and that was it... loan went through fine.