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My wife and I have a few OD charges a couple months ago due to medical emergency. Will this hurt our chances at getting a decent rate?

by will88__745 from Beersheba Springs, Tennessee. Feb 4th 2016 Reply


Dan Paladin (dpaladin)
#1 ranked lender in California - 416 contributions

Not necessarily, your scores and the terms of your loan such as loan to value and type of property will dictate the rate you are offered. The UW will review your bank statement and will see the OD and most likely require an explanation as to what caused it. Obviously if a bank account runs negative and your are applying for a loan and most likely a higher payment than rent....the UW has to be comfortable that the issue has been remedied. Hope this helps.

Feb 4th 2016
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,795 contributions

More info needed, but in general, overdraft charges will be seen by the lender's underwriter and most likely will ask for a letter of explanation.. I would think that with a one time emergency, it might not be an issue, but everyone is different.. I would say be sure to use a broker who has relationships with numerous lenders.. that way, if one lender says no, then they can keep trying other lenders until one say's yes.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Feb 4th 2016
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Nancy J Releford (nancyreleford)
#4 ranked lender in Tennessee - 213 contributions

I think you will be fine as long as you have a good explanation letter indicating what happened and also what you have done to rectify this from happening again.

Feb 4th 2016
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You shouldn't have a problem. It more so depends on your credit. We can help you write a letter of explaination and move forward. This is something we deal with all the time. Please call me to discuss further. 423-946-5688. I'm located in Tennessee and would love the opportunity to talk through this with you. Jonathan TiptonBenchmark Home Loans

Feb 4th 2016
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