topic Re: will 1 bad check mess up my mortgage app? in Mortgage Loans

will 1 bad check mess up my mortgage app?

Anonymous — Thu, 19 Nov 2009 12:17:13 GMT

just saw a check i wrote for 46 dollars bounced. I paid it this morning . I was wondering if this will affect my mortgage application. **bleep** banks web site showed nothing cleared last night now today poof bounced check and over draft for 6 dollars. im gonig to call the bank at 9 and see about having the OD removed but the BC will still be there.

Re: will 1 bad check mess up my mortgage app?

Anonymous — Thu, 19 Nov 2009 17:12:06 GMT

generally no. Usually only a history of bounced checks is an issue.

That said, if the LO is not very happy with the file and is on the fence, anything can force the decision to a decline.

Re: will 1 bad check mess up my mortgage app?

donkort — Thu, 19 Nov 2009 17:18:45 GMT

I tell you....that's an amazing increase in credit score in just one month! Congratulations, and good luck on your mortgage.

Do you have overdraft protection? If not, you should really get it if you could

Re: will 1 bad check mess up my mortgage app?

Anonymous — Thu, 19 Nov 2009 17:21:44 GMT

as far as the mortgage app goes, overdraft counts same as nsf. In either case you spent more money than in the account. As far as personal finances, that is another issue.

Re: will 1 bad check mess up my mortgage app?

Anonymous — Thu, 19 Nov 2009 19:26:51 GMT

Nope, didn't mess up my app. However, they did want me to write an explination. I had waaaay more funds than the check which was for $50 and all my money was tied in my other accounts which they were fully aware of as I had just recently given them my updated bank statments. And they just asked me to write an explination and bring it to closing! So it was not a big issue.

Re: will 1 bad check mess up my mortgage app?

DallasLoanGuy — Thu, 19 Nov 2009 21:18:03 GMT

@Anonymous wrote:
generally no. Usually only a history of bounced checks is an issue.

That said, if the LO is not very happy with the file and is on the fence, anything can force the decision to a decline.

this is the correct answer....

except that the u/w would provide final decline

Re: will 1 bad check mess up my mortgage app?

Anonymous — Thu, 19 Nov 2009 21:29:26 GMT

good catch. I meant UW

Re: will 1 bad check mess up my mortgage app?

fishbjc — Fri, 20 Nov 2009 17:25:24 GMT

I bounced SIX...dh made deposit into savings instead of checking. Grrrr....wasn't even mentioned though.

Re: will 1 bad check mess up my mortgage app?

Anonymous — Fri, 20 Nov 2009 19:26:59 GMT

it always depends upon the file, and the reasoning. Depositing a check into the worng account is fairly easy to prove and then UW could easily see what happened by looking at bank statements. Again, with a strong file it is not big deal as long as there is no history of it.

With a weaker file it is another story. If the UW is sitting with the file and is up in the air on whether to say yes or no to it, and a overdraft/nsf pops up right before closing (when buyers are told very specifically not to let anything bad happen), it can cause the UW to lean towards declining the loan.

Re: will 1 bad check mess up my mortgage app?

Anonymous — Fri, 27 Nov 2009 15:52:12 GMT

Sorry for the delay in responding, thanx for the good info. basiclly it was a check I forgot I wrote for 46 dollars, it over drafted me for like 6 dollars I didnt have but had. I just ran my CR and my EQ has actually gone up to 650. now when I show my bank statement to the mortgage company will the 1 bad check affect us? me and my husband are both in the high 6s

Re: will 1 bad check mess up my mortgage app?

Anonymous — Sat, 28 Nov 2009 11:57:00 GMT

while going over my bank account I saw they did not bounce the check they did pay it but hit me with an over draft. how will that affect me?

Re: will 1 bad check mess up my mortgage app?

Anonymous — Sat, 28 Nov 2009 16:38:31 GMT

it's the same. UW only cares that funds were not there.