Yeah, underwriting can feel like a black box sometimes. Couple points from my experience:
- Transfers between your own accounts shouldn't be a big deal, but underwriters get jumpy if they can't immediately see the purpose. They're basically looking to rule out undisclosed debts or borrowed funds.
- If you absolutely have to move money around, label clearly in your bank's online transfer memo—something simple like "Savings to Checking for mortgage down payment." Saves headaches later.
- Honestly, it's not always logical from our side, but remember they're just ticking boxes. Anything that doesn't fit neatly into their checklist means extra scrutiny.
Had a client recently who deposited cash from selling a used car—totally legit, but no paper trail. Ended up delaying closing almost two weeks while they chased down proof. Bottom line: keep things boring and predictable during this period.
Couldn't agree more—underwriters definitely prefer predictability. Had a similar situation with a client who transferred funds from a joint account with their spouse. Even though it was clearly their own money, underwriting still asked for a signed letter explaining the transfer. Felt unnecessary, but that's how it goes sometimes. Best advice is to keep your financial activity minimal and straightforward during the mortgage process...the fewer questions raised, the smoother things tend to go.
That's a good point about keeping financial activity minimal—definitely makes life easier. I had a similar but slightly different experience recently. One of my buyers had funds coming from overseas, and even though the money was clearly theirs, underwriting flagged it immediately. We ended up having to provide a bunch of extra documentation, including translated bank statements and a detailed letter explaining the source of funds. Felt like overkill, but I guess underwriters have their reasons...
From what I've seen, the key is really transparency and preparation. If you know you'll be moving money around, especially from joint accounts or international sources, it's helpful to gather documentation beforehand. A simple letter explaining the transfer, signed by all account holders, can save you a lot of headaches later on. It might feel unnecessary at first, but trust me, it's better than scrambling at the last minute.
One thing I've wondered about though is how underwriters handle situations involving gift funds from family members. I've heard mixed experiences—some people say it's straightforward, while others mention it causing delays or extra scrutiny. Has anyone here dealt with gift money during underwriting? Curious if that tends to complicate things or if there's a smooth way to handle it.
Went through the gift money thing myself a couple years back—honestly wasn't too bad, but preparation was key. Here's what helped:
- Got a signed gift letter from my parents clearly stating it wasn't a loan.
- Had them transfer the funds early, so it showed up on my statement well before underwriting.
- Provided their bank statement showing the withdrawal.
Felt like overkill at the time, but underwriting barely blinked. Guess it depends on the lender though...
Had a similar experience when refinancing a while back. Thought I was being super thorough, but underwriting still came back with questions about a random deposit from selling some old furniture online—seriously, it was like $300! Ended up needing screenshots of the sale listing and messages with the buyer. Felt ridiculous at the time, but guess they're just covering their bases. Curious if anyone else had to document small deposits like that...?
