rejected for home equity line of credit by bank of america- but based on old information

[Anonymous]

The catch is this:

They did not use OUR INCOME from last year and this year to date to determine eligibility.

This is despite the fact that 1) when I made the inital call about this line of credit, I said I had not yet done this past years taxes (2013), and I was told that was not a problem, to send the previos two years. Its no secret that we are self employed and that income varies year to year. and 2) I asked if I needed to do a year to date for THIS year at least (since one of the forms clearly stated I needed to) and I was told NO that information is incorrect. I do nto need to provide that.

Now: the other thing to know is that based on THEIR stated equity requirements, AND credit score, we qualified.

But we were rejected for the debt to income ratio which I more than once told them was incomplete and why.

See, I figured they would get back to me with questions about income or anything else if they needed it. Its clear they needed it, I pointed out they might need it, they said they didnt.

I explained this to the rep I spoke to today, saying: Last years income was better than the previous years, and We have a new good paying job THIS year since January which is why I applied for thsi loan now. But whats the point in doing better if that doesnt count? She had explained to me the whole process they went through to determine we didnt qualify but NOT ONCE did anyone apparently think: Huh, maybe we need their last years income?!?!? And they couldnt call and ask me for it?

To add to my confusion: ALL OUR ACCOUNTS are with Bank of America. All they have to do to see our annual income is look at the deposits into our business account.


In any case, I am not that experienced with home equity lines of credit, only refinances, having done two over the past 20 years. But the process for those is, ironically, way more clear.

Is Bank of America being weird or sloppy in its process here, or is this standard operating procedure? Is there something just alltogether different about a home equity loan process than a refi? I was expecting, again, obviously incorrectly, that if they needed more inforation or saw they had old info they would contact me. But its not like I didnt offer this information at the start.

[Anonymous]

Is your current mortgage with bank of america? If it isn't i would reach out to the mortgage holder. We encountered a similar situation recently. We went to one bank and they said no, because of appraisal. I then went to my current mortgage company and they green-lighted.

[Anonymous]

After previous terrible experiences with BofA, I wouldn't use them for anything. The only reason I still have a BofA credit card is that it's my oldest card and I want to maintain a longer credit history, which would negate that if I closed it. I rarely use it and pay it off in full every month, and have zero interactions with BofA representatives now. It's been great.

Worst customer service ever.

[Anonymous]

we got rejected by capital one (our regular bank) several times over equity issues. we wound up getting a home equity line with fairfax credit union instead.

[Anonymous]

Anonymous wrote:After previous terrible experiences with BofA, I wouldn't use them for anything. Worst customer service ever.

+1

[Anonymous]

I like TD Bank - call Michael in the Gaithersburg office. He is a dream to work with.

[Anonymous]

Anonymous wrote:The catch is this:

They did not use OUR INCOME from last year and this year to date to determine eligibility.

This is despite the fact that 1) when I made the inital call about this line of credit, I said I had not yet done this past years taxes (2013), and I was told that was not a problem, to send the previos two years. Its no secret that we are self employed and that income varies year to year. and 2) I asked if I needed to do a year to date for THIS year at least (since one of the forms clearly stated I needed to) and I was told NO that information is incorrect. I do nto need to provide that.

Now: the other thing to know is that based on THEIR stated equity requirements, AND credit score, we qualified.

But we were rejected for the debt to income ratio which I more than once told them was incomplete and why.

See, I figured they would get back to me with questions about income or anything else if they needed it. Its clear they needed it, I pointed out they might need it, they said they didnt.

I explained this to the rep I spoke to today, saying: Last years income was better than the previous years, and We have a new good paying job THIS year since January which is why I applied for thsi loan now. But whats the point in doing better if that doesnt count? She had explained to me the whole process they went through to determine we didnt qualify but NOT ONCE did anyone apparently think: Huh, maybe we need their last years income?!?!? And they couldnt call and ask me for it?

To add to my confusion: ALL OUR ACCOUNTS are with Bank of America. All they have to do to see our annual income is look at the deposits into our business account.


In any case, I am not that experienced with home equity lines of credit, only refinances, having done two over the past 20 years. But the process for those is, ironically, way more clear.

Is Bank of America being weird or sloppy in its process here, or is this standard operating procedure? Is there something just alltogether different about a home equity loan process than a refi? I was expecting, again, obviously incorrectly, that if they needed more inforation or saw they had old info they would contact me. But its not like I didnt offer this information at the start.

Perhaps you should have completed your taxes prior to this application if you knew/had a feeling they would need last years income if it was that much different.

It's an automated system and what you gave them was rejected.

[Anonymous]

You live in some delusional fantasy. You think the loan processor is going to sit around and ask "I wonder if their income is better now? Maybe I should call them"? Fuck no. He's going to take the income you provided and check your debt and done. If it's even a human doing it all, which it probably isn't.

[Anonymous]

Ugh, I hate TD Bank. I recommend Eagle or Cardinal Bank,

[Anonymous]

FYI the reps on the phones are probably not loan processors/underwriters.

BUT..it is your fault, not theirs. If it was on the form I would have provided it...even if they said I didn't need it but especially since I am the only one that really knows my income increased.

oh, and no..they are not going to go searching thru your accounts.

[Anonymous]

OP here. Thanks for the support and advice. I was specifically told that I needed to do a year to date only if was applying for a Home Equity Loan, and not a Home Equity line of credit.

I was also actually told that they would get back to me regarding questions about income.

I was given definite misoinformation about the process as well as the qualification process. I was told it was going to be credit score and home equity. At every turn where I said maybe I should wait until XYZ I was told no no no. So, yeah, I guess thats my fault that I thought they wanted my business and would let me know what they really needed from me to make that happen.

And they DID look through my accounts when they asked for proof the business is in operation- I said uh just look a t our accounts we have with you. we get regular deposits to it, and that did, right then and there, and that solved that part of it.

Anyway, I will check with my mortgage loan holder and get all the facts from them before wasting more time! At this point, even if BOA gets back to me I am not going to go with them if I can get something else.

Its comforting to know one rejection does not mean a guaranteed rejection from other lenders. I have not been through this before.