Although the overdrafts will need to be explained, if your credit scores and other qualifying characteristics support an automated approval, there could be a way to get your file approved. Obviously, your chances are much better if there are no overdraft charges on the bank statements in question. I would recommend that you start today taking care to avoid overdrafts on your May bank statement. If you were to go out and find a home today, you would not be able to close until June anyway and we typically need just one bank statement for underwriting purposes.
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