Title: Mortgage Lenders and the $10 Mystery Deposit
It’s wild how granular they get with these things. I had a client last year who got flagged for a $15 PayPal transfer from her sister—literally just splitting groceries. The underwriter wanted a full explanation, plus a screenshot of the conversation. At first, she thought it was a joke. But honestly, it’s not just about paranoia; it’s about the paper trail. Lenders have to prove every cent is legit, especially with all the anti-fraud and anti-money laundering rules now.
I do think sometimes it goes a bit far. I mean, if someone’s got a steady job and clean credit, does a random $10 deposit really matter? But I’ve seen deals get delayed over stuff like this, so now I tell buyers to avoid any weird transfers or cash deposits during escrow. If you can’t avoid it, just write up a quick note—“Roommate paid me back for pizza,” or whatever. It feels silly, but it saves headaches.
Funny thing is, the more prepared you are, the less they seem to ask. Maybe it’s psychological? Like, if you’re upfront about the little stuff, they trust you more on the big stuff. Or maybe that’s just wishful thinking on my part... Either way, it’s one of those hoops you just have to jump through these days.
Honestly, I thought I was being pranked when my lender asked about a $12 Venmo from my cousin labeled “tacos 🌮.” Like, what’s next—explaining why I bought socks at Target? But yeah, I learned the hard way that every random deposit is suddenly a federal case during escrow.
Here’s my rookie guide for surviving the “mystery deposit” saga:
1. Don’t touch your bank account unless it’s your paycheck or you’re paying bills. No side hustles, no cash gifts, not even fantasy football winnings.
2. If you do get money from someone, write a note. Doesn’t have to be Shakespeare—just “Mom paid me for Netflix” works.
3. Screenshot everything. If you think it’s overkill, it’s probably just right.
4. Try not to laugh when your lender asks for proof of that $10. They’re just doing their job... even if it feels like you’re auditioning for CSI: Mortgage Edition.
I get why they do it, but man, it’s a wild ride. At least I’ll have stories for my housewarming party.
That “CSI: Mortgage Edition” line is too real. The level of detail lenders want these days can feel totally over the top, but it’s become the norm. I’d add a couple things to your list:
- If you’re moving money between your own accounts (like savings to checking), keep a record of that too. Lenders sometimes flag those as “unexplained” unless you can show it’s just you shuffling funds.
- Big cash deposits are a major red flag—they’ll ask for a paper trail every time. If someone gives you a gift for the down payment, make sure they fill out a gift letter (most banks have a template).
- Try to avoid opening new credit cards or making big purchases until after closing. Even buying furniture can trigger more questions.
It’s definitely not fun, but in my experience, being overly organized up front saves a ton of headaches later. I’ve seen buyers scramble at the last minute for documentation and it’s never pretty. The less “mystery money,” the smoother the ride—although, yeah, it does make you second-guess every $5 Venmo.
