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I need help with an explanation letter for overdrafts in my checking account

by Smithbe2013248 from , California. Mar 5th 2018 Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,333 contributions

When you apply for a loan, and you submit your bank statements to prove you have sufficient funds, and listed on the bank statement are NSF charges, the lender requires a letter of explanation. This is because NSF charges represent the mishandling of funds.. They are getting ready to lend you literally hundred's of thousands of dollars.. they want to know you will make the payments on time.. So, You want to be honest, but at the same time, the lender is looking to see if the circumstance that caused you to overdraft was isolated or habitual. Ideally a letter that says why it happened, it was a one time thing, not a habit, and explain what steps you have taken to be sure it doesn't happen again. If you have lots of NSF charges, then you could have a problem explaining it.. but if there's only a few, you should be all right.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Mar 6th 2018
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