Bank Statement vs. VOD's -- HELP

[Anonymous]

Hello everyone,

Long-time lurker.  I've been in process of repairing credit for 3 years now and have a comfortable middle score of 730 on Mortgage merged report, with low DTI and no derogatories whatsoever.

Problem arose with the loan officer though--my bank statements.  The last two months I switched my direct deposit account from a savings account to my primary checking account because I needed more than 6 transfer a month to deal wtih the unexpected costs of moving.

As a result, my checking account statement doesn't look so good.  I have one NSF in the reporting period and account balance was low at the beginning of reporting period (when I wasn't using it to store my money).  In addition to this, I have $300 in NSF fees Year-to-date.

Long story short--I've heard some lenders accept VOD's for verification of assets.  I have high-ish income verified through paystubs.  Problem is, I've worked wtih three lenders, and none of them accept VOD's.  Is this something the Automated Underwriting determines or is this a lender by lender situation, and I just need to find the right lender?

Does anyone know if there are *any* mortgage officers with access to lenders who accept VOD's in lieu of bank statements for residential property in New Mexico?

Please help, otherwise I'll have to back out of this contract and start seasoning for 60 days.

[JVille]

This is exactly why lenders insist on bank statements. VOD's are a thing of the far distant past. Sorry.

I went thru this with my sister and in preparation for getting a Mortgage we opened a new account (due to YTD -  NSF fees) and deposited her funds. Then waited 3 months so we could supply clean bank stmts with no issues or unusual large deposits. 

[Anonymous]

I am going through  the same thing right now, no nsf during this or last statement but year to date is 300.00. Can you tell me what happen 

[JVille]

What will happen??? The UW may or may not notice the YTD item. If they do you may/will likely need to write a letter of Explaination.

In my sisters case her Fico scores were already barely acceptable and an UW would have looked at her entire financial picture as possible unstable or as someone who already can't pay their bills on time. And that would have been correct in my sisters case.

As a former lender/Underwriter I knew we had to plan ahead if she was going to get a house. Took 6 months of advance planning, family paying off bills and opening new accounts to season money and clean her situation up. I think we got her scores to about 650. This was about Sept last year.

Every borrower is different and your financial circumstances are unique. The Lender looks at the total picture and generally not focusing on one thing like "sloppy bookkeeping" (nsf) but yes they can matter. In my sisters case those NSF, late pmts and Fico scores should have gotten her loan declined. 
Good Luck and speak with your LO about your concerns.