You’re not wrong about the level of scrutiny. I’ve seen underwriters ask for letters of explanation on $15 PayPal transfers, but then totally ignore a string of $2 ATM withdrawals. It’s not always about the amount—it’s more about anything that looks out of pattern for your usual banking activity. I had a client once who got flagged for a $200 deposit from selling old furniture on Facebook Marketplace. Took three emails and a screenshot of the chat to clear it up. If your credit isn’t spotless, they’ll dig deeper, but honestly, even folks with great scores get these questions now. Keeping records handy really does save time, even if it feels a bit over the top sometimes.
Honestly, I get what you’re saying about keeping records, but I’ve found it’s not always worth stressing over every little thing. Last time I refinanced, I just waited for them to ask about something weird instead of preemptively gathering every receipt. Most of the time, they only care if it’s a big jump from your normal activity or if it’s a lump sum. If you’re organized, sure, keep stuff handy, but I wouldn’t go overboard unless you know your file’s going to be tricky. Sometimes less is more—don’t volunteer info unless they ask.
That’s a fair point—no need to make yourself crazy tracking every coffee receipt. Lenders really do focus on the bigger stuff, like large deposits or anything that looks out of the ordinary. I’ve seen files get bogged down when people over-explain or send in a mountain of paperwork that wasn’t needed. Still, if you know your credit isn’t spotless or your income’s a bit complicated, having a few key docs ready can save headaches. It’s all about balance... don’t stress the small stuff, but don’t get caught off guard either.
I get where you’re coming from, but honestly, I’ve seen underwriters get hung up on the weirdest little things. Had a deal almost fall apart last year because of a $900 Venmo transfer from a buddy—nothing shady, just splitting a vacation rental, but it triggered a whole round of questions. I agree you don’t need to document every latte, but if your credit’s not great, they’ll dig deeper than you’d expect. I always keep a folder of explanations ready, just in case. Better safe than sorry, even if it feels like overkill sometimes.
Honestly, I’ve had underwriters latch onto stuff that made zero sense to me. One time, they questioned a $300 deposit from my mom—just a birthday gift, but it turned into a mini-investigation. If your credit’s not spotless, they’ll look for anything that stands out, even if it’s totally innocent. I keep backup docs and explanations for every oddball transaction now. It feels ridiculous sometimes, but I’d rather be overprepared than scrambling at the last minute.
