I get why it feels like overkill, but honestly, sometimes those tiny transfers do matter. I’ve seen underwriters get hung up on a $15 PayPal from a roommate for utilities. But here’s the thing—if you’re using a major bank, a lot of those “flagged” deposits are just automated system checks. It’s not always a person scrutinizing your every move. I actually tell folks to chill a bit on the spreadsheets unless they know they’ve got unusual income sources. Otherwise, you’ll drive yourself nuts trying to document every coffee run. Sometimes less is more, as long as you can explain the big stuff.
I actually tell folks to chill a bit on the spreadsheets unless they know they’ve got unusual income sources. Otherwise, you’ll drive yourself nuts trying to document every coffee run.
I get where you’re coming from, but I have to admit, I went a little spreadsheet-heavy when I refinanced last year. It was partly paranoia, partly habit. My lender flagged a $20 Venmo from a buddy for concert tickets, and I ended up having to explain it in writing. After that, I started tracking anything that wasn’t my regular paycheck or auto-deposit.
Here’s how I handled it, step by step:
1. Pulled three months of bank statements and highlighted anything that wasn’t payroll or a recurring bill.
2. Made a list with the date, amount, and a quick note (e.g. “$15 PayPal – utilities from roommate”).
3. For anything over about $50, I tried to keep a screenshot or email trail, just in case.
4. If it was something weird, like a cash deposit from selling old furniture, I wrote a one-liner explanation (“Sold bookshelf on Facebook Marketplace”).
It did feel like overkill sometimes, but when the underwriter asked about a random $60 deposit, I just had the answer ready. Maybe it’s just my nature to over-prepare, but I’d rather have an explanation than scramble at the last minute.
That said, I agree it’s probably not necessary for everyone. Some banks are stricter than others, and not all underwriters dig that deep. Still, I wonder—has anyone had an underwriter actually ask for explanations on small, regular things like grocery splits or coffee reimbursements? Or does it mostly come up with larger or out-of-the-ordinary deposits?
Curious if I’m just being too cautious or if others have run into this level of scrutiny.
I’ve definitely seen underwriters get picky, but mostly with anything that looks unusual or doesn’t match your stated income sources. For me, it was a $200 Zelle from my sister for a group gift—had to dig up a text thread to prove it wasn’t some side hustle. That said, they never cared about the $8 Venmo for coffee or splitting pizza. Maybe it depends on the lender’s risk tolerance? Has anyone had them question recurring small splits, or is it just the random bigger stuff that raises flags?
That said, they never cared about the $8 Venmo for coffee or splitting pizza.
Funny enough, I had the opposite—my underwriter flagged three $12 Venmo payments from my roommate labeled “utilities.” Had to explain we weren’t running a secret power company. Anyone else get grilled over super regular, tiny transfers? Or is that just my luck?
Honestly, I wouldn’t call it just your luck—lenders can be all over the place with what they flag. I’ve seen folks get questioned about $5 transfers labeled “lunch” while others breeze through with way bigger, weirder transactions. It’s kind of a gamble depending on the underwriter and how strict their guidelines are that week.
Personally, I always try to keep my Venmo notes super generic during the mortgage process. No jokes, no emojis, just “rent” or “utilities.” Maybe it’s overkill, but I’d rather not give them any reason to dig deeper. It’s wild how something as harmless as splitting a bill can suddenly look suspicious when you’re under the microscope. Guess it’s just part of the fun of buying a house these days...
