Home Buying in Houston>Question Details

Pearlandbuyer, Home Buyer in Texas

One Overdraft Will My Loan Be Denied?

Asked by Pearlandbuyer, Texas Mon Aug 19, 2013

Ok here is my situation: I started building a house in March and received conditional approval (which were basically updates and LOE for items from 2008/2009). My credit score is 745, my DTI is fine, I also have money for closing and have put down around 6% and am paying my PMI upfront. In June I received one overdraft charge by mistake of the bank (it was reversed the same day). My daily balance has never been negative. I was asked to turn in updated bank statements (closing in September). Will this cause my loan to be denied?

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Not likely. And regardless if this had or had not happened, the lenders always ask for updated bank statements at the last minute. They will also call your employer and run your credit again. Lenders are much more watchful, but hopefully this one small item will not keep you from getting a loan.

Mark McNitt
m 832-567-4357
Bernstein Realty, Inc.
0 votes Thank Flag Link Mon Aug 19, 2013
Thanks a bunch for your response. I guess two things that offset this that have changed since my initial application is that my credit score has increased to 752 and I have also received a pay raise (4%). I forgot to mention that after closing costs I will have eleven months of reserves in my savings. I hope all of this helps. I am so worried.
Flag Mon Aug 19, 2013
quick answer - NO. If it is an issue, the bank will write an explanation letter and you will also. I assume that you are still working with a lender, but if you have a problem, or need to change please contact me. I am a mortgage loan originator as well as a Realtor.

Arnold Richie, Realtor®
Terry Burnaman Realtors
arnold@yournexthomehouston.com
http://www.yournexthomehouston.com
713-396-2017 281-788-8962
0 votes Thank Flag Link Tue Aug 20, 2013
If the bank has admitted the error is theirs than just get a letter from them on their letterhead explaining the issue. You should not have any problems whatsoever.

_____________________________________________________
Don Groff | REALTOR® & Mortgage Broker
Austin Real Estate Pros & 360 Lending Group
o 512.669.5599 | m 512.633.4157 | listings@dongroff.com
websites: http://www.AustinListed.com | http://www.360LendingGroup.com
Web Reference: http://www.AustinListed.com
0 votes Thank Flag Link Tue Aug 20, 2013
Absolutely not!!

Get the bank to write a letter admitting their mistake.

No problems!!


Tom Burris
Mortgage Banker
http://www.dallasloanguy.com/
(214) 763-4629 cell/text/nights/weekends(Really!!)
tburris@servicefirstmtg.com
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
0 votes Thank Flag Link Mon Aug 19, 2013
Sounds like you'll be fine. Actually...you sound like a dream borrower.
I'm sure the statement shows the reversal on the same statement...don't stress.
Congratulations on your new home! :)
0 votes Thank Flag Link Mon Aug 19, 2013
You might want to touch base with your lender now, so that the bank error can be documented in advance, avoiding any last-minute glitches just before closing. Enjoy your new home.

Al Geffon
Trend Setter Realty
(713) 213-6350
al@geffon.net
Web Reference: http://www.har.com/algeffon
0 votes Thank Flag Link Mon Aug 19, 2013
That's a normal response ... lenders do nothing without the blessing of the underwriters. You should be just fine.
Flag Mon Aug 19, 2013
I have contacted my lender and on the bank statement I have highlighted the error and the reversal. My lender is saying she doesn't think it is a problem but will need to check with the underwriter.
Flag Mon Aug 19, 2013
If your bank can verify and show proof that it was a mistake and reversed then you should be fine. As long as you have documentation to back it up!
0 votes Thank Flag Link Mon Aug 19, 2013
Thanks for the response. What type of documentation would I need to provide? I highlighted on my bank statement the reversal which was the same day that the overdraft occurred. I also don't show a negative balance for any of the days that month. Would that be enough documentation or do I need some type of letter?
Flag Mon Aug 19, 2013
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