Had to write a letter once because my grandma gave me a $100 birthday check and I deposited it right before closing. The underwriter wanted to know if it was a loan or a gift. Felt a bit silly explaining, “Nope, just grandma being grandma.” The process can get weirdly personal.
Yeah, the scrutiny over deposits can feel a bit much, especially when it’s something as innocent as a birthday check. Underwriters are just doing their job, but I get how it feels invasive. Any non-payroll deposit—no matter how small—can trigger questions, especially close to closing. They’re looking for undisclosed loans or gifts that might affect your ability to repay the mortgage.
It’s not uncommon for folks to have to write letters of explanation for things like this. I’ve seen people have to explain $50 Venmo transfers from friends or even refunds from Amazon. The key is just being upfront and documenting everything, even if it feels silly. If you know you’ll be getting any gifts or odd deposits during the process, it helps to keep a paper trail and let your loan officer know ahead of time.
Honestly, sometimes the process feels more personal than applying for a passport... but it’s all about making sure everything checks out for the lender. It’s not perfect, but it keeps things above board.
I get the need for transparency, but honestly, I think sometimes folks go overboard with documenting every tiny deposit. When I refinanced, I just kept my main account super “boring”—no random transfers or gifts until after closing. It’s less paperwork and less stress. Maybe that’s a bit cautious, but it saved me a lot of hassle.
When I refinanced, I just kept my main account super “boring”—no random transfers or gifts until after closing.
I’ve been stressing about this exact thing. My mom wanted to help with a little “gift” for the down payment, but then I read somewhere that lenders get all weird about sudden deposits. I get wanting to keep things simple, but it feels like you need to plan your whole life around what the bank might question. Is it really that big of a deal if there’s a random $200 Venmo from a friend? Or am I just overthinking it...
Lenders are like detectives with a caffeine addiction—they’ll question anything that looks out of the ordinary. A random $200 Venmo probably won’t tank your deal, but if it’s close to closing, they might ask for an explanation. I once had to write a letter about a $50 birthday gift from my aunt... felt like I was on trial for cake money. Just keep things predictable until you get those keys.
