Whether overdrafts in your checking account affect your closing will depend on whether your lender gets a report that reflects those overdrafts. One of the standard procedures in mortgage application processes is called a "verification of deposits." Originally designed to confirm that funds an applicant says are available for a purchase down-payment and closing costs actually exist, these verifications sometimes include information on how a depositaccount has been handled. Also, if overdrafts have resulted in a bank's closure of a deposit account, that may get reported to a credit reporting agency, and could show up in a credit report requested by your lender.
If your bank has a Courtesy Overdraft or Overdraft Privilege program and you have only overdrawn your account briefly and within the parameters of the program, it's unlikely that your bank will have filed a negative report with a credit reporting agency. If you have already received a mortgage loan commitment that isn't contingent on receipt of your credit report, you probably can assume that the overdrafts were not reported, or that your lender did not consider them serious enough to affect your application. Your question is an important one, however, because mishandling a deposit account can result in the reporting of negative credit information.
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Whether overdrafts in your checking account affect your closing will depend on whether your lender gets a report that reflects those overdrafts. One of the standard procedures in mortgage application processes is called a "verification of deposits." Originally designed to confirm that funds an applicant says are available for a purchase down-payment and closing costs actually exist, these verifications sometimes include information on how a 