With regard to your bank statements, just make sure that from this point forward, you have no overdraft fees. Only two months of bank statements will be needed, so start now and you should be good. Your loan officer can also help with a letter of explanation if that is needed by the underwriter if an overdraft fee does show up. You just don't want several of them.
A higher interest rate doesn't apply. You may be thinking of the "old days" when subprime loans were around. Those are non-existent.
If you donâ€™t have the ability to make the concerted effort to eliminate the overdrafts, I might recommend that you take some time to shore up your financial position before purchasing a home. I would be more than happy to give you some guidance toward that end.
Peter Boyle 612 701 6816
Another side of this you should look at is that you shouldn't put every dollar you have into buying a home. There are unexpected costs that will come up as part of being a homeowner (i.e. furnace breaking, water damage, appliances breaking.) Now hopefully you won't have to deal with big issues like this but smaller issues probably will come up and if you are not prepared for it you probably won't be in a very comfortable situation.
If you're not truly prepared to buy a home it will come back to bite you in the butt.
Either way, good luck!
Please make sure that you are well prepared for home ownership. I am concerned that you are already spending most of the money that you make. When owning a home, you will have several other additional, monthly expenses that you may not have as a renter. Examples would be: trash, water, sewer, electricity, gas, cable/satellite TV, etc. Those costs are above and beyond your monthly mortgage payment. Analyze your spending habits and prepare a budget. Please make sure that you are in a position and have the ability to cover the additional expenses of owning a home. Talking to a loan officer can also help in determining that ability.
Best wishes to you!