Will we get approved?

I'd first like to say, even with the most helpful and patient mortgage lender, I do not full understand a lot of the process. I just do as I'm told.

Okay, I have a mortgage lender who is a great friend of the family, and even manages the branch in which she works. She's been working with me for months trying to repair my credit so I could buy a house. She has my credit (or I have my credit, with her help) up to about 640-650. I have a steady income of $32,000 and my debt to income ratio I believe is fine/good as according to her. I am applying for a house that is $116,000. I have 3.5% for the down payment. I also have an extra $1,000 for security in savings.

My problem? I SUCK at keeping my bank account looking normal. We almost bought a house a while back but there were some issues with the house itself and everyone advised us not to go through with it. At that time, she had my two months bank account statements with zero overdrafts. I bank with PNC. Every statement says a YTD amount of overdraft fees. I have had 14 over drafts in a year. Almost exactly a year. 4 of which were the bank's fault and that can be proved. But 10, 10 of them are mostly my fault? I mean, I've tried getting PNC to connect my account with my savings account so it could be pulled from there but they cant do that. It's usually just from when i use a vendor that for some reason takes WEEKS to charge me something and then SURPRISE.

And the reason my account goes down so low is because I throw everything into savings.

I know my strategies are not the smartest.

With all of that said, she's been honest enough to tell me it's worth "buying a house" and she thinks "she can get it done" because the underwriters are HER underwriters. She's the manager of the company.

Can I get this accomplished with a wicked good LOE? Can she get it done because it's merely a matter of opinion of the underwriters?

What are my chances?