When to Use This Message
Provide a Large Deposit Explanation when:
- Your lender flagged a large or unusual deposit during loan or mortgage underwriting.
- You received money from a gift, sale, inheritance, or bonus that needs to be documented.
- You want to move the loan process forward quickly by addressing the question proactively.
- The underwriter requested a written letter explaining the source of funds.
Message Writing Tips
- State the Exact Amount and Date: Match the figures to your bank statement exactly so the underwriter can verify it without confusion.
- Name the Source Clearly: Identify whether the money came from a gift, sale of an asset, bonus, tax refund, or another source.
- Offer to Provide Documentation: Mention that you can supply supporting paperwork (gift letter, sale agreement, pay stub) if needed.
- Keep It Factual and Brief: Underwriters want a clear paper trail, not a long story — state the facts plainly and offer to answer follow-up questions.
Frequently Asked Questions
Why do lenders ask about large deposits?
It's part of standard underwriting to confirm funds aren't an undisclosed loan, which could affect your debt-to-income ratio or loan eligibility.
What counts as a 'large' deposit?
This varies by lender, but it's typically any deposit that's unusually large relative to your normal income or account activity.
Do I need supporting documents along with the letter?
Often yes — gift letters, sale receipts, or pay stubs strengthen your explanation. Check with your loan officer about what they specifically require.