I’ve been wondering the same thing—my lender wanted screenshots for every $20 transfer from my business account, but didn’t even blink at a big deposit from a client. Makes me nervous I’ll miss something random and it’ll hold up the whole process. Did you have to explain every single little Venmo or just some of them?
my lender wanted screenshots for every $20 transfer from my business account, but didn’t even blink at a big deposit from a client.
That’s been my experience too. The small stuff gets all the attention, while the bigger, more obvious transactions seem to slide right through. When I refinanced last year, they flagged every Venmo under $50 but didn’t ask a thing about a five-figure wire transfer. It’s frustrating, but I found that keeping a running spreadsheet of all my transfers (with notes) helped speed things up. Still, it feels like there’s no real logic to what they scrutinize.
That’s been my experience too. The small stuff gets all the attention, while the bigger, more obvious transactions seem to slide right through.
Honestly, I get where you’re coming from, but there’s a bit more to it than just “no real logic.” Underwriters are usually looking for anything that looks out of the ordinary or can’t be easily explained. Sometimes, those $20 Venmo transfers are flagged because they’re peer-to-peer and harder to verify—could be a loan, could be a gift, who knows. But a big client deposit? If it matches your invoices or business activity, it’s less suspicious on paper.
- Lenders have to follow anti-money laundering rules, and small, frequent transfers can look like someone’s trying to “structure” deposits to avoid reporting.
- The big wires from clients usually have a paper trail—contracts, invoices, etc.—so they’re easier to justify.
- I’ve seen underwriters ignore a $30K deposit because it was clearly from a business client, but then ask for three months of explanations on $40 Zelle payments.
Not saying it’s not frustrating—believe me, I’ve seen some head-scratchers—but there is a method to the madness, even if it doesn’t always feel logical from the outside.
Honestly, it’s wild what they’ll pick apart. I remember getting grilled over a $15 PayPal refund from a friend for concert tickets, but nobody blinked at a huge deposit from my main client. It feels backwards, but I guess the little stuff is just harder for them to track. Still, you’d think common sense would kick in somewhere along the line... but nope.
I remember getting grilled over a $15 PayPal refund from a friend for concert tickets, but nobody blinked at a huge deposit from my main client.
This cracked me up because I had almost the exact same thing happen. I had to explain a $12 Venmo from my sister (she paid me back for pizza), but the bank just nodded at a $10k wire like it was pocket change. It’s like they’re looking for the tiniest breadcrumbs, but miss the loaf of bread right in front of them.
Honestly, I think the underwriters just have a checklist and if something doesn’t fit their neat little boxes, they want a letter of explanation. I once wrote three paragraphs about a $20 Amazon return. Felt like I was confessing to a crime.
It’s frustrating, but I guess they’re just scared of missing something. Still, you’d think common sense would win out once in a while... but, yeah, not holding my breath.
