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Why Is Getting a Mortgage So Hard When You're Self-Employed?

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snorkeler29
Posts: 9
(@snorkeler29)
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Honestly, I’ve seen deals get delayed over stuff as small as a $20 PayPal from a friend. The underwriters just want to see a clear paper trail for every cent, which can feel over the top. One thing I always tell folks: keep your “mortgage money” in one account and avoid moving things around if you can help it. Anyone else ever try explaining a random birthday gift deposit? That’s always fun... Do you think the rules are actually helping prevent fraud, or just making things harder for regular people?


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(@williamp86)
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Yeah, I’ve had clients get flagged for a $15 Venmo from their cousin—no joke. The rules are meant to catch money laundering, but honestly, it feels like they’re just tripping up regular folks more than anything. I always tell people: treat your bank account like it’s under a microscope during the whole process. Even then, you’ll probably still have to explain something weird...


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sports744
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It’s wild how picky they get. I had to explain a $20 PayPal from my sister for splitting pizza—felt ridiculous. I started keeping a spreadsheet of every random transfer just in case. It’s like they expect us to live in a bubble during underwriting...


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markparker258
Posts: 8
(@markparker258)
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Honestly, I get where you’re coming from, but I kinda see why they do it. Lenders are just trying to make sure there’s nothing weird going on with your money—especially when you’re self-employed and your income isn’t as straightforward as a W-2. I’ve seen folks get tripped up by random Venmo or PayPal transfers that look innocent but end up raising red flags for underwriters.

That said, yeah, it can feel over the top. I had a client who had to explain a $15 Zelle from her roommate for groceries. She was so annoyed, but once she sent in a quick note, it was fine. Keeping a spreadsheet is smart, but sometimes just having screenshots or quick explanations ready does the trick.

It’s not about living in a bubble, though—it’s more like they want to see a clear story for every dollar moving around. Annoying? For sure. But I’ve also seen deals fall apart when people try to hide or ignore those little transfers... so as much as it feels nitpicky, it’s probably better than the alternative.


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jamesm91
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I get the need for transparency, but sometimes it feels like lenders are just looking for reasons to say no. Is it really necessary to scrutinize every tiny transfer? I’ve had clients who felt like they were being interrogated over $10 coffee reimbursements. There’s got to be a better balance between due diligence and common sense, right?


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