I’m half convinced they’d ask for a DNA sample if I found a $20 in an old coat pocket.
That cracked me up because it’s honestly not far off. When I refinanced last year, they flagged a $100 birthday check from my aunt. Meanwhile, I shifted a chunk from my brokerage account and nobody cared. It’s like they’re allergic to anything that doesn’t fit their checklist, no matter how small. I get the need for rules, but sometimes it feels like common sense gets lost in the process.
It’s wild how picky they get about the tiniest deposits. When I went through my refi in Dallas, they flagged a $75 Venmo from my sister for splitting dinner, but didn’t even blink at a few grand moving between my checking and savings. Here’s what worked for me:
1. I started keeping a running list of every “weird” deposit or transfer, no matter how small. If it wasn’t my paycheck, I wrote it down.
2. Any time something got flagged, I just sent over a screenshot or a note explaining it—sometimes overkill, but it sped things up.
3. I stopped moving money around as much during the process. Less to explain.
Honestly, it felt like they cared more about the paper trail than the actual amount. It’s annoying, but if you’re ready with explanations, it saves headaches later. Still don’t get why birthday money is suspicious but big transfers aren’t... guess that’s just how their system works.
Funny you mention the Venmo thing—I had a client get flagged for a $50 Zelle from her grandma, and she was so confused. Meanwhile, she’d moved $10k between her own accounts and nobody cared. It’s like the system just wants a story for anything that doesn’t look like a regular paycheck. I always tell folks, if it’s not a paycheck or direct deposit, just jot it down somewhere. The underwriters aren’t really worried about the money itself, just making sure it’s not some mystery source. Still, the logic behind what gets flagged is a bit of a mystery to me too...
It’s wild how random the flags can be. I had a similar thing happen last year when we were refinancing—my wife transferred $100 from her mom for a birthday dinner, and suddenly the lender wanted a letter of explanation. Meanwhile, I moved a chunk from my savings to checking (way more than that $100) and nobody blinked. It really does seem like they’re looking for anything that doesn’t fit their “normal” pattern, which is probably just direct deposit or regular payroll.
Here’s what’s worked for me, step by step, whenever we’re getting ready for a refi or even just a mortgage application:
1. For any incoming transfer that isn’t your paycheck or something super obvious, just jot down who it’s from and why. Even if it’s small. I keep a little spreadsheet with dates and notes like “birthday gift from Mom” or “reimbursement for concert tickets.”
2. If you know you’ll need to move money around (like pulling funds from savings for closing costs), try to do it early—at least two months before you apply. That way, it shows up as “seasoned” in your account and there’s less scrutiny.
3. When in doubt, ask your loan officer ahead of time if something might look weird. They’ve seen it all and can tell you if you’ll need a letter or extra documentation.
4. Keep digital copies of anything that could help explain a transfer—screenshots, emails, even text messages if they show what the money was for.
5. Don’t stress too much about the logic behind what gets flagged. It’s not always consistent (which is annoying), but as long as you can show where the money came from, you’re usually fine.
I get why some folks think it’s overkill, but after seeing friends get delayed over $50 gifts or splitting dinner bills, I’d rather be over-prepared than scrambling at the last minute. The process isn’t perfect, but being organized definitely helps smooth things out.
And yeah, sometimes it feels like they care more about tracking down grandma’s birthday cash than actual big transfers... Go figure.
Honestly, you nailed it with the spreadsheet idea. I’ve seen deals get held up over the tiniest deposits—meanwhile, six-figure transfers between accounts barely get a glance. It’s not logical, but lenders are obsessed with “paper trails.” I always tell people: if you can’t explain it in two sentences, expect questions. The system’s clunky, but being meticulous upfront saves so much hassle later.
