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

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[quote=Anonymous][quote=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.

[/quote]

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.[/quote]

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