How cool is Venmo? A younger friend introduced me to it. There’s a small group of us girls who will go out to dinner once every month or so, and, if the restaurant isn’t of the friendly variety where they will split the check for your group of six or more, you’re in trouble if you don’t have cash. And, I hate IOUs between friends. I never have cash, so I hate paying them. I also do not want to be the cheap one asking for $23.73 three months after our dinner out when my friend forgets to pay me. (It’s so uncomfortable, right?)
So, Venmo, if you haven’t heard of it yet, allows you to transfer money from your checking account to your friends’ accounts and vice versa without the need to write and deposit a check or withdraw money from an ATM. It’s genius.
I reviewed my first bank statements last week with deposits from Venmo. Fortunately, the deposits weren’t large enough to have to source where they came from for the underwriter, but it got me thinking: What if they were? If you paid your roommate rent through Venmo or were reimbursed by someone for a large sum, you may need to source the deposit. Here’s what I would recommend.
Step One: Write a brief LOX (letter of explanation) for the underwriter which details the source of the deposit (i.e. rent money from roommate, reimbursement for vacation house, or sale of you pet llama).
Step Two: Login to your Venmo account online. (Unfortunately, the app doesn’t allow you to access the information you need.)
Step Three: Under “Account” select “Bank, Cards, and Transactions.”
Step Four: View “Bank Transfer History.”
Step Five: Go to “File” and then “Print” the webpage for the underwriter which shows the history of credits you will need for the underwriter. Be sure the page includes the URL and that you submit ALL pages to the underwriter. They aren’t a fan of you turning in only 3 pages of a four page set. They are always afraid of what could possibly be on that fourth page that you did not submit. (Tip: Print to a PDF so that you can easily email the document to your loan processor or loan office.)
Now, I haven’t had to submit this to an underwriter yet, and I can imagine some underwriters may want even more, but I think this documentation should suffice. There may be one or two out there who would ask to see bank statements from the person who transferred the funds to you.
Feel free to contact me if you have questions about sourcing deposits or getting pre-approved in for a mortgage loan.
This post was originally blogged at Loan Officer Lately.