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Overdraft fees and Going to Underwriting

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Anonymous
Not applicable

Re: Overdraft fees and Going to Underwriting


@Anonymous wrote:
Op, it's not the end of the world if you get denied by Chase. There are plenty of lenders that will work with you. We initially got denied by Freedom Bank for that very reason - overdrafts. Our LO shopped out mortgage to another lender and we've been through the first round of UW with a conditional approval and all we had to do was write an LoE. The rate was high 4.5% but we are buying a new house and with seller concessions we were able to buy down to 4.1% pretty cheaply to use those all up.

Well the thing is this is the second lender we changed since we started Escrow. Th first lender had horrible customer service and took his time to tell us that we would do 3% down with 4.5 interest rate....we were furious that he took so long to tell us that. I called chase the next day and they said they will pay our closing costs if we put 5% down with 4.1 interest rate. I called out fist lender to see if he could match that and he said we could 5% down with 4.2 interest rate so that's why we went with chase. 

Message 31 of 36
Anonymous
Not applicable

Re: Overdraft fees and Going to Underwriting


@2b2rich wrote:

@Anonymous wrote:
The Loan already was sent to the Under Writer. I assuming it won't get approved. We switched to Chase when the lender we were using wanted to give us a 4.5 interest rate and we wanted 4.1 interest rate. Chase offered us closing costs with a 4.1 interest rate. I regretted going with them once I realized they would have access to my bank account (where the previous lender only asked for my husbands bank statments as assessts)  I e-mailed the loan offer asking him if they were going to look at my Bank account  becuase it wasn't up to par andhe wrote back : "It doesn’t matter.  Assets are viewed in total.  Just because you don’t keep a lot in your account has no bearing on anything." To answer your question I have more then 10 overdrafts this year :/ its horrible I know :/ My husband who is the main borrower has no overdrafts. 

As someone else pointed out, it's not impossible to get approved with some lenders, but I don't know that JP Morgan will be the ones with that many.  I'm almost certain that any lender who will work with those, is going to want LOE for them, and you will have to convince them that OD are a thing of the past, and how you plan to prevent this from happening again.

 

As myself and another has also pointed out, after December, the tally at the bottom of your bank statement that states how many OD you've had YTD, will reset to zero and you can start fresh and hopefully you won't have any more of those.  

 

Keep in mind, that if things go south with this loan, and you do decide to try again this year, going forward any UW might want a LOE for the mortgage pull(s) you've already had and want to know what the end result of that was (appraisal fell short, you were denied (and why), did you just back out, etc).  Maybe not, but just mentioning it so you can be prepared.

 

Good luck!


I was thinking that's what would happen...we're stuck. I'm hoping I can come up with a good Letter of Explanation...or we may just have to forfit and find another property and have to explain why things went bad to the third lender we choose:/

Message 32 of 36
Anonymous
Not applicable

Re: Overdraft fees and Going to Underwriting

This is pretty scary.  My dummy roomate claimed his bank account was closed and he was unable to pay his share of the rent right away.  Well I am buying a home and had to make GF payment and inspection payment.  Everything came out at once leaving me overdrawn by not much but I did get 2 over draft fees in Sept.  Hoping this does not affect me. 

Message 33 of 36
Anonymous
Not applicable

Re: Overdraft fees and Going to Underwriting


@Anonymous wrote:

This is pretty scary.  My dummy roomate claimed his nak account was closed and he was unable to pay his share of the rent rigght away.  Well I am buying a home and had to make GF payment and inspection payment.  Everything came out at once leaving me overdrawn by not much but I did get 2 over draft fees in Sept.  Hoping this does not affect me. 


I think you should be fine because it's recent and you can justify why you were overdrawn. Mine are a lot so it will be hard to explain:/

Message 34 of 36
btsilver
Established Member

Re: Overdraft fees and Going to Underwriting

Well update on my loan process:

 

 We have be conditionally approved!  And none of the conditions are LOEs for my overdrafts! They are which I assume regular things like my physical work address, Some k-1 forms, and a copy of the HUD from the sale of our current home. So far things are looking up. I'm still super stressed right now.

Message 35 of 36
btsilver
Established Member

Re: Overdraft fees and Going to Underwriting

Finally Closed!

 

Long, Long time coming. So here is the rest of the story. Interestingly enough they werent at all concerned about my overdrafts. I guess the fact that that funds for closing weren't coming from that account. Any, this whole time I was worried about my finances when I should have been worried about the finances of the person buying our old home. We were originally scheduled to close on our old house on 10/23. We didnt close until 11/6 and they almost didnt make it. They apparently had trouble identifying his income and where is gift money came from. Anyway after getting that HUD-1, we closed on our new house on 11/10! And now I look forward to unpacking for the next 2 weeks.

Message 36 of 36
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