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Best Answer
- Wayne Brown, "SDMortgagefinder"
- Contributions:1433
Actually, it's an underwriter call. They will look at your statements, and might investigage further if they think there might be a pattern.
Overall, it is not an absolute reason to reject your loan.
Good Luck.
Overall, it is not an absolute reason to reject your loan.
Good Luck.
- Larry Morris CMPS, "Oregon Mortgages"
- Contributions:45
While it is good news that they didn't deny it outright due to the lates, you do still have some big hurdles. The underwriter, and the USDA will need to sign off on the Letter of Explanation on the lates. Even if the underwriter does, that is no guarantee the USDA will.
The others shouldn't be major issues unless there are problems with the easement, water or excess rental expenses.
Best of luck. You are getting closer!!
- NikkiDean
- Contributions:12
Thanks Rudi! You do the same....By the way y'all I just polished off a whole pan of rice krispy treats...and my husband has lost 15 pounds... :P I will be SO glad when this is over!
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
Good Luck Nikki! .... Have a Happy Thanksgiving!
- NikkiDean
- Contributions:12
Boy do I believe that....ok...well wish me luck guys!
- Clay Branch, "Georgia Loans"
- Contributions:7835
clear to close
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
CTC = Clear to Close / All Underwriting Conditions Satisfied. Then you still have the Funding Department which may have further Conditions. After that your File will go through a Final Audit which may bring forth other Conditions. .... Folks have been known to gain weight during their entire loan process. Nervous eating habits may occur. #:>)
- NikkiDean
- Contributions:12
What is a CTC? Thank you!
- Clay Branch, "Georgia Loans"
- Contributions:7835
No, you are not clear yet. Get what the loan officer is asking for and get it to him/her quickly. The faster you react the faster you will get the CTC.
- NikkiDean
- Contributions:12
Ok, So I recieved an email from our Mortgage broker saying that the bank needs an explanation on a 30 day late payment from jan 08, and our attorney's contact info...something about easment, and a water sample, and our housing expenses from our rental. SO? Does this mean we are in the clear..?? Or can we possibly still be denied....??
- Larry Morris CMPS, "Oregon Mortgages"
- Contributions:45
Nikki,
You've added another piece to the puzzle. If the loan falls apart, and if your father-in-law is able to hold off on payment for a while longer, you will be able to get financing once you have 2 months of clear bank statements.
Again though, if you are not coming to close with any cash, you might not need to provide proof of any assets.
Oh, and thanks for the compliment...
You've added another piece to the puzzle. If the loan falls apart, and if your father-in-law is able to hold off on payment for a while longer, you will be able to get financing once you have 2 months of clear bank statements.
Again though, if you are not coming to close with any cash, you might not need to provide proof of any assets.
Oh, and thanks for the compliment...
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
If that's the truth. That's all you got. You'll have to hope it will suffice.
- NikkiDean
- Contributions:12
So my letter of explanation would consist of..." We get balance updates on our mobile phone. My husband recieved an update stating we had $1.45 in our checking account, he thought it said $145, and assumed there was sufficient funds to cover additional transactions??" If I were an underwriter I'd proly pee my britches if I read that!
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
A good letter of explanation may resolve this issue. ... Good luck, Rudi
- NikkiDean
- Contributions:12
Haha! Thanks Wayne!! You seriously just made my day!! Omg I haven't had a compliment like that in years! So I hope my loan officer knows what they are doing...Now that you mention it I do enjoy having a panel of experts at my disposal! Have a great day you guys! I guess I will keep y'all posted!
- Wayne Brown, "SDMortgagefinder"
- Contributions:1433
NikkiDean
Stopppppppppppp Worrying !!!!!!!!!!!!!!
You are going to be Fine. If your L/O is worth their Salt you will be Fine....
BTW...you are a Hottie!!!!!!
That's a Complement Not an Insult!!!
Kuddos to Your Your Hubby.
Really............Don't Sweat It until You Have Too!!
You are Worrying Too Much.
If you have Issues................you have All of Us at Your Disposal.
Relax and Take a Calms Pill.
Seriously
Wayne
Stopppppppppppp Worrying !!!!!!!!!!!!!!
You are going to be Fine. If your L/O is worth their Salt you will be Fine....
BTW...you are a Hottie!!!!!!
That's a Complement Not an Insult!!!
Kuddos to Your Your Hubby.
Really............Don't Sweat It until You Have Too!!
You are Worrying Too Much.
If you have Issues................you have All of Us at Your Disposal.
Relax and Take a Calms Pill.
Seriously
Wayne
- NikkiDean
- Contributions:12
Hi Paul, One of them actually was reversed. It shows on my statement that they reversed it. But you know Chase wouldn't approve our loan even though we had documentation verifying that the charges weren't our fault. I wonder if I am worrying a bit too much and should just let it run its course, but I think we are on the fence anyway...so it makes every minor thing a huge deal.
- Paul Mondello, "Paul Mondello"
- Contributions:2095
I have seen cases where the bank was willing to reverse the overdraft fees, the statements with the reversals were shown and all was well following such (best way to get results is to speak to a supervisor, a little begging may be in order)
- NikkiDean
- Contributions:12
Hi Larry, Thank you for all of your comments, they have been very insightful. basically here is the complete runthrough: My husband has a good stable job at a local plant, and I am a stay at home mother. My father in law built this house to our specifications, and we agreed to buy upon completion. We already had a good faith estimate and pre approval letter...etc. We have been in the house for over a month. The appraisal went well as did everything else. In the final stages Chase denied our loan due to I don't know what. We had a letter of explanation but I didn't pay much attention to it, our mortgage broker run our application through to a bank in our state(GA), he has friends there. SO, we are in underwriting, and he just called me today and asked us to sign some additional disclosures and turn in a well test and this month's bank statement. We have those pesterous overdraft fees and I just know it is going to bite us. I just want to be aware of what to expect, and if we should look for the worst. Like I said it was only 4 overdraft fees but the account is new as well. Thanks Larry!
- Larry Morris CMPS, "Oregon Mortgages"
- Contributions:45
And here is where a dilema arises. We know that there were charges and that it could impact a lender's decision. Therefore, it is better to discuss how this can be overcome with a lender rather then hidden from the lender.
That said, Rural Developent guidelines do allow for Verification of Deposits. However, an individual lender can place their own overlays on and require bank statements.
I also know that I have had USDA loans where we have not disclosed bank assets and none have been asked for since my borrowers were not coming in with an cash to close.
I have also found the local USDA staff to be helpful in how to explain situations like this.
Generally speaking, you get 3 red flags with them. This would be considered one. If your Debt to Income in below 29/45 and all other aspects are strong, this shouldn't be a deal killer. Your explanation about a large unauthorized withdrawl should be sufficient.... and it should have been with Chase as well.
Out of curiosity, are you using a local lender or a national one. My only reason for asking is that local lenders are often more in touch with the different nuances of the state Rural Development underwriting. Each state is different and what one state will allow, another might not.
- Wayne Brown, "SDMortgagefinder"
- Contributions:1433
Clay
If they did a VOD- Verfication of Deposit, then the bank would be indicating that the account has only been open two months.
Now maybe not, but in these times I've had lenders what source of funds for deposits. Just a thought, but I agree along your lines otherwise.
Her L/O you would like to think would know best since he/she has everything on them.
If they did a VOD- Verfication of Deposit, then the bank would be indicating that the account has only been open two months.
Now maybe not, but in these times I've had lenders what source of funds for deposits. Just a thought, but I agree along your lines otherwise.
Her L/O you would like to think would know best since he/she has everything on them.
- Kelly Lacey, "kellylacey"
- Contributions:797
VOD = Verification of Deposit. Instead of providing 2 months of bank statements, the lender can contact your bank directly to complete this form. It allows the lender to see average balances, deposits, etc.
- NikkiDean
- Contributions:12
Well of course I wouldn't turn that in as an explanation. We just opened this new account with BoA b/c our old account was in good standing, we had it for four years, but Chase denied our loan b/c the year to date overdraft information was too high. We even offered a letter of explanation from the bank stating that the overdrafts were not our fault...they were due to an extremely high unauthorized transfer from an electric company. SO we opened a new account in order to have a clean slate for the new loan company. So here's the dillema..I dont have more than 2 months of statements from the new bank. The loan officer understands, but the underwriters may not see eye to eye with us. What on earth is a VOD?
- Clay Branch, "Georgia Loans"
- Contributions:7835
I agree with Justin, if they have not been submitted to the U/W ask if a VOD will do.
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3421
If you do get asked for an explanation, "my husband sucks at balancing a checkbook" would NOT be a very good idea on what to submit on your explanation letter.
It probably isn't a dealbreaker if you file is otherwise strong. If your file is marginal it certainly can be an area of concern. You should ask your Loan Officer for their opinion on if it will be problematic, and have a better explanation prepared.
You might also ask your loan officer if they could possiblly accept a VOD with 60 days average balance as substitution for 2 months bank statements.
- Larry Morris CMPS, "Oregon Mortgages"
- Contributions:45
yes, the timing wasn't good at all...
he good news is that in a couple of months they will be a non-issue. What you might ask your lender is if showing 12 months bank statements would help. If you can show that there were no other 's for the previous 12 months you might have a better shot.
he good news is that in a couple of months they will be a non-issue. What you might ask your lender is if showing 12 months bank statements would help. If you can show that there were no other 's for the previous 12 months you might have a better shot.
- NikkiDean
- Contributions:12
No these fees were in late october, so I guess they aren't really 'old'. We had 4 transactions that didn't go through b/c #1. there wasn't enough funds to cover them...and #2. I didn't know about them in the first place. They were small debits, like $10 or so...but my spouse was punished accordingly...haha. We have money in our account now, but we couldn't beat the charges. I am just worried that the underwriter will feel we arent good candidates for the loan b/c of this...I know how selective the loan underwriting is now...thanks for the input guys!
- Larry Morris CMPS, "Oregon Mortgages"
- Contributions:45
Generally speaking, the USDA only wants to see 2 months of bank statements. When you started with the new lender you should have submitted updated bank statements. If these were old OD fees, they should not be a factor any more.
Out of curiosity, do these show up on your credit report?
Out of curiosity, do these show up on your credit report?
- NikkiDean
- Contributions:12
No, they are just little overdraft charges, like $35.00. We had 4 of them in 2 months b/c my husband sucks at balancing a checkbook. They are not in collections or anything like that, just simple overdraft charges. The reason I ask is b/c the first lender We went through was Chase, but they denied our loan, and we are trying a different lender. It has been over 2 months since we started this process, and it is nerve racking. We have fair credit and sufficient income as well, and we are only looking to borrow 90,000. Does USDA ever deny loan applications?
Do overdraft charges affect loan approval?
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