- Most lenders I’ve worked with lately want a signed “gift letter” plus proof of the transfer, like a bank statement from the giver.
- Sometimes they’ll ask for a brief explanation too, especially if the amount’s large or timing is close to closing.
- I’ve seen underwriters get picky about even small deposits if they can’t tie it to a clear source.
- Best bet: over-document, even if it feels silly—saves headaches later.
- Had a client once who had to get their grandma to write a note on a napkin... lender still accepted it. Go figure.
Napkin notes from grandma—now that’s a new one for me. I’ve seen underwriters get creative, but usually they want everything buttoned up. The “over-document, even if it feels silly” advice is spot on, though. I always tell folks: if you think you’ve got enough paperwork, add one more page.
Here’s a quick rundown I give clients when they’re dealing with gift funds or odd deposits:
1. Get a formal gift letter (most lenders have a template).
2. Have the giver provide a bank statement showing the withdrawal.
3. Show your own account with the deposit.
4. If the timing’s weird or the amount’s big, write a short note explaining it—doesn’t have to be fancy.
5. Keep copies of everything, even text messages if that’s how you got confirmation.
“I’ve seen underwriters get picky about even small deposits if they can’t tie it to a clear source.”
Couldn’t agree more. I once had a buyer who deposited cash from selling old furniture—took three emails and a signed statement before the lender was satisfied. Sometimes it feels like overkill, but it really does save time in the end.
Honestly, I get why lenders want a paper trail, but sometimes it borders on absurd.
Had a deal nearly fall apart over a $200 Venmo transfer from a buddy—had to dig up screenshots and everything. It’s wild how much scrutiny goes into these little things, especially when you’re self-employed and your income isn’t the standard W-2. Makes me wonder if we’re overcomplicating the process just to check boxes.“I’ve seen underwriters get picky about even small deposits if they can’t tie it to a clear source.”
Title: Self-Employed? You May Not Need Tax Returns to Get a Mortgage
Yeah, it’s nuts how deep they’ll dig. I once had to explain a $150 PayPal refund from an Amazon return—took longer than getting my actual loan approval. Is it really about risk, or just bureaucracy at this point?
Is it really about risk, or just bureaucracy at this point?
Honestly, it feels like a mix of both. Lenders have to prove to regulators that they're not making risky loans, so they document everything—even minor stuff like your $150 refund. When I refinanced last year, they asked for explanations on small Venmo transfers. It’s partly risk management, but the layers of paperwork seem to be more about covering themselves than actually assessing your ability to pay. Sometimes I wonder if anyone actually reads half the documents they request...
