My intake appointment was earlier this month. My MC told me to save $1240 payment shock for 3 months. I have saved the money just fine. Unfortunately, my account has over drafted by $12. I was not charged an overdraft fee. I get paid tomorrow, and my accounts will all be brought back to normal. Will this set me back more months?
It depends on the nature of the overdraft. If you were not charged then you might be fine HOWEVER the underwriters will see on your statements that you dipped into the negative and that will be a condition you need to explain.
Remember payment shock is probably the most confusing part to the qualification process. It is not good enough to save money if you are not maintaining your balances elsewhere.
Instead I like to look at payment shock as net worth. Let’s say you have 1000 in your checking and 0 in your savings. Next month you have 900 in your checking and 1240 in your savings. This is NOT saving for payment shock.
Saving for payment shock is the total value of all your accounts combined grows by at least that amount every month without averaging month to month. So in the above example you started with 1000 total. That means the next month you need to have no less than 2240 total. And so on. 900 plus 1240 is not 2240.
With that said the easiest way to get qualified is have only 1 bank account. Transferring money for the point of visualizing payment shock savings will require a letter of explanation for every transfer out of checking every transfer into savings and possibly a printed transaction history stamped by the bank teller. Every. Single. Time. It’s a nuisance but it works.
They are going based on the information you provide. But hiding information is also a form of mortgage fraud. There are many ways they can find out, often accidentally, whether you are not providing all information.
Is there a reason you would not provide bank account information?