I'm stressed about my bank account? Why do they care about every deposit?
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Why do I have to explain random stuff like Venmo payments?
Key Takeaways
- Lenders verify all deposits come from acceptable sources like salary or savings.
- Unexplained transactions could signal undisclosed debts that affect approval.
- Documentation like receipts or explanations resolves most transaction questions.
Why do I have to explain Venmo payments?
You're wondering why the lender wants explanations for Venmo payments and other transactions that seem unrelated to your mortgage. Lenders review all deposits and withdrawals on your bank statements to verify where your money comes from and track your financial stability.
Underwriters need to confirm that deposits come from acceptable sources like your salary, savings, or approved gift funds. Unexplained deposits could represent undisclosed debts, unreported income, or borrowed money that would affect your debt-to-income ratio. Venmo payments, cash deposits, or transfers between accounts all require documentation to show they're legitimate parts of your financial picture.
Gather receipts, screenshots, or written explanations for any deposits the lender questions. Common explanations include reimbursements from friends, transferred savings, or sold items. If you received gift money, you'll need a gift letter from the person who sent it.
Share the requested documentation with your lender and they can walk you through what additional details they need for your specific situation.
About the Author
Dan Green
20-year Mortgage Expert
Dan Green is a mortgage expert with over 20 years of direct mortgage experience. He has helped millions of homebuyers navigate their mortgages and is regularly cited by the press for his mortgage insights. Dan combines deep industry knowledge with clear, practical guidance to help buyers make informed decisions about their home financing.
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