Yeah, I totally get that. I thought I was organized, but the amount of bank statements and explanations I had to dig up was wild. At one point, they wanted a letter about a Venmo payment from my mom—like, really? But I guess it’s better than getting denied at the last minute. Just wish it felt less nitpicky sometimes.
At one point, they wanted a letter about a Venmo payment from my mom—like, really?
That’s wild, but I can relate. I thought I was prepared too, but the underwriter still asked for explanations about random deposits—even ones that were just me splitting dinner with friends. It does feel nitpicky, but I guess they’re just covering all their bases. I kept thinking, “Is this normal or are they just picking on me?”
I wonder if anyone else had to explain things like gifts or side hustle income? I had to provide a full paper trail for a small freelance payment, and it felt like overkill. Did you find any way to make the process smoother, or was it just a matter of being patient and digging up whatever they asked for?
Yeah, underwriting can really feel like a scavenger hunt sometimes. Here’s what I’ve learned after going through it a few times:
- Any deposit that doesn’t match your regular payroll or expected income gets flagged. Doesn’t matter if it’s $20 from a friend or a birthday gift from grandma.
- They’re mostly worried about “seasoned funds” and making sure you’re not taking out secret loans or getting help that isn’t allowed.
- For side gigs, I started keeping a folder with all my invoices and payment screenshots. Saved me some headaches later.
- Letters of explanation are annoying but usually do the trick—even for stuff like Venmo transfers.
Honestly, I wish someone had warned me how picky they’d get about random cash apps and little side payments. Has anyone here had to explain deposits from selling stuff online, like Facebook Marketplace or eBay? That tripped me up once when I sold an old bike... didn’t expect to have to write a letter about it.
Yeah, the whole “prove where your money came from” thing can get pretty wild. I had to explain a $200 deposit once because I sold an old gaming console on OfferUp. Didn’t think twice about it until the underwriter flagged it and wanted a paper trail. Ended up digging up the chat with the buyer and screenshots of the listing... felt like I was prepping for a court case or something. Now I’m super careful about what hits my account during the loan process—almost paranoid, honestly. It’s like, if it’s not my paycheck, I just let it sit in Venmo until after closing.
Honestly, I get where you’re coming from—those underwriters can be relentless about tracking every dollar. But I actually take a different approach during the loan process:
- I don’t avoid deposits, even small ones. If it’s legit, I just keep a folder with receipts, screenshots, whatever proof I have. It’s a pain, but it keeps things cleaner than letting money pile up in Venmo or PayPal.
- Sometimes holding off on deposits can backfire. If you need to show reserves or explain your cash flow, having everything in your main account (with documentation) can help.
- Had a situation once where I waited to move some freelance payments until after closing... lender flagged it anyway because they saw the transfers later and wanted explanations retroactively. That was even more annoying.
I guess my point is, the paranoia is real but sometimes being too careful creates its own headaches. As long as you can show where the money came from and it’s not sketchy, most lenders just want the paper trail—even if it feels like overkill.
