"Ended up needing screenshots of the sale listing and messages with the buyer. Felt ridiculous at the time..."
Had something similar happen when we refinanced a couple years ago. We had a small deposit from my brother reimbursing me for concert tickets—literally just $150—and underwriting flagged it. Had to screenshot our text convo and even show the ticket purchase confirmation. Felt like overkill, but I guess they're just being cautious.
Makes me wonder though, is there a certain threshold amount where they stop caring about these small deposits, or is it always just random? Seems like different lenders have different standards...
When we refinanced last year, we had something similar happen. My wife sold an old bike online for around $200, and underwriting flagged that deposit too. We had to dig up the original listing, messages with the buyer, and even a PayPal receipt. Felt excessive at the time, but I suppose they're just covering their bases.
From what I've read, lenders do have different thresholds—some might ignore anything under $500, others scrutinize every little deposit. It probably depends on their internal policies and how strict their underwriting team is. Makes me wonder if anyone's ever had a lender completely overlook small deposits altogether...or is that just wishful thinking?
I've seen this happen more times than I can count. Honestly, lenders are all over the place with their policies. Some are super strict and flag every little deposit, while others let small stuff slide. I've had clients who deposited $300 from selling furniture online and underwriting didn't even blink. Then again, another client had to jump through hoops for a $150 birthday gift from grandma—seriously.
In my experience, it often comes down to the lender's internal guidelines and even the individual underwriter handling your file. Some underwriters are just more cautious or detail-oriented than others. It's not always consistent, which can be frustrating when you're trying to anticipate what they'll ask for.
One thing I've learned is that it's better to be proactive. If you know you're refinancing or applying for a mortgage soon, keep records of any unusual deposits handy—screenshots, receipts, emails—whatever you've got. It might feel like overkill at the time, but trust me, it's way easier than scrambling last-minute when underwriting suddenly decides they need proof of that $200 bike sale.
Also, if you're concerned about this kind of scrutiny, it doesn't hurt to ask your lender upfront about their threshold for deposit verification. Some loan officers will give you a heads-up on what to expect so you're not blindsided later on.
Bottom line: yeah, it can feel excessive and annoying, but lenders are just hyper-focused on risk these days. They want everything documented clearly so there's no question marks later on if your loan gets audited or reviewed by regulators. It's a pain in the short term...but having everything ready ahead of time makes the whole process smoother in the end.
Couldn't agree more about being proactive. Last year, I refinanced a property and underwriting flagged a random $250 deposit from selling an old kayak on Craigslist. Thankfully, I'd kept the email exchange and screenshot of the listing—saved me from scrambling around at the last minute. It's annoying how inconsistent lenders can be, but having your ducks in a row definitely helps keep your sanity intact...mostly.
Haha, lenders really do love making mountains out of molehills, don't they? Did they seriously question you about a kayak sale...? Makes me wonder if anyone's ever had to explain something even weirder during underwriting.
