I think I am going to be sick....

[user3]

We got turned down for a credit line of equity. We really needed that! We wanted to add on another bedroom to our house so that an my husbands' grandpa could come live with us instead of the family putting him in a retirement home. We didn't even ask for a large amount because we just needed the money for the supplies. We also wanted to have extra money incase things get tight such as when taxes are due. Neither of us has owned a house and we are worried about having to owe taxes. There are other things we have like to use the money for too but the main reason was the extra bedroom. We have a three bedroom house but I work at home and need the office space. The loan officer told me that the underwriter didn't like all the transfers going on in our bank account. Hello! It's just my own money I am moving from savings to checking. He also didn't like that my paycheck deposit didn't all go into one bank! Yet, he has all my paycheck stubs and all the bank records back into this past March!!
I just don't get it! Everytime we try to do something like this we get turned down yet I know tons of people with really bad credit that get cars, houses and loans. We don't really have credit, all we have is the house showing on our credit. We have never had a credit card just Debit/bank cards. We both have always felt if we can't pay for it with cash we don't need it. We have managed to save up for 5 different cars in our lifetime and pay for them before we drove them off the lot! You'd think that would count for something but NO "they" want us to be in debt up to our ears and then they'll give us money. We already tried to get a personal loan and that didn't work. I don't even know if it is worth a try to go out for a home improvement loan. It just doesn't make sense. All we asked for is $5,500 We don't even need that much but that was the min. Our house has anywhere from 50,000 to 70,000 in equity since we bought it this past Feb. we can't refinance until 2007 due to a prepayment penalty. Which was the only damn way we could get a home loan. You'd think people would be happy that we didn't have any debt!
I have been balling my eyes out since I found out. I hate owning a home! It has not helped out at all! If anything it ties up more of our money!
How the hell does anyone even get a loan?

I am sorry to ramble on like this but I am so upset and none of my friends understand. They are all single and live in apts.


UPDATE IN POST BELOW

 

[jasper17]

That really sucks.

Maybe it would be worth it to try a different lender - there has to be someone out there who is less conservative and that would be willing to work with you. It's kind of unbelievable how lenders will give people who will be in debt forever loads of money when they shouldn't and people who do need it and are careful have trouble.

With regard to the house and taxes, make sure you have a good accountant do your taxes for you. The year before last was our first year owning a home and we got a decent chunk back, and last year, too. I think there's some sort of credit for owning a home or the interest you pay on the home is deducted and a good accountant can make sure you get the best return possible - I'd say avoid a place like H & R Block but that's just due to bad experiences for us in the past.

Good luck. I hope that you can find a solution.

 

[user4]

oh hunni, i am so sorry to hear this. u dont deserve to be turned down. i def agree with you about the whole credit thing, and i do think that ur way of doing things is much better, unfortunatly... banks dont think so. they like the interest they make off loans and all that great stuff the put people in debt until they are swimming in bills- kinda like me! u would think, though, that your house would help you out with something. thats so wierd. i hope everything gets resolved. you could try taking out a personal loan if its only 5000, the interest will be significanly higher than most other types of loans though. but if u plan on paying it off soon, that might be your best option. good luck girl. let us know how everything turns out.

 

[mspixieears]

I'm so sorry to hear that, Vanessa, I don't have any advice to offer on this front but really feel for you.

What is it with 'money' people wanting everyone to have credit cards etc. People look at me like I'm a leper when I say I don't have one.

It is indeed very financially responsible that you don't have massive debts...sometimes it feels like the world is against people who want to do the 'right' thing or do things the 'square' way. I can only wish you best of luck and am hoping you find a solution to all of this. Don't lose hope, just keep your chin up, keep trying!
(said the loser sponging off her parents...)

 

[joytheobscure]

I am sorry, I can relate to that "no credit" thing- I don't have credit cards or decent credit but I know my income is higher than quite a few people in my area. There is no such thing as "small town bankers" anymore.. everyone wants you to have tons of credit cards and car loans. I don't have car loans either (my car is so old I'm waiting on it to die). I don't want to be in a situation where so much of my income is going out in payments. I wouldn't cry over it though it does suck majorly for you that you can't get a loan, do you know anyone who could cosign for it?

Its hard trying to do things the sensible way instead of going overboard with credit cards- I agree with you 100% if you can't pay cash don't get it- it saves so much stress on relationships and families, a house payment I can totally justify or home improvements but I think there are so many decent cars out there that you can get- why worry about needing payments that are so high.

We are totally in a situation where if we can't pay cash we can't get it. I'm not good for advice but four years ago we added a room onto our old house out of necessity and payed out of pocket for it. Just suffered and done without for about six months. Suave shampoo and no clothes shopping -lol. But my husband was the builder and did everything himself.

I hope you can work it out.

 

[joytheobscure]

Quote:

Originally Posted by mspixieears I'm so sorry to hear that, Vanessa, I don't have any advice to offer on this front but really feel for you. What is it with 'money' people wanting everyone to have credit cards etc. People look at me like I'm a leper when I say I don't have one. It is indeed very financially responsible that you don't have massive debts...sometimes it feels like the world is against people who want to do the 'right' thing or do things the 'square' way. I can only wish you best of luck and am hoping you find a solution to all of this. Don't lose hope, just keep your chin up, keep trying! (said the loser sponging off her parents...)

LOL!!! Me too... I get even more of that when I drive my old car, and live in a trailer house on my parents property (I justify it by saying my parents are growing older and its good that we are nearby with the grandkids) - My coworkers think I'm crazy for cashing paychecks. If I have cash I don't have to justify anything to a bank.

 

[user3]

Thanks ladies! This is just really hard for me because my husband and I have worked so hard for so long and we thought that having a house would help us out when needed that extra money. I know crying won't help but it's either that or I let my anger get to me. Some of it is because the loan officer was a complete moron! I took her all of our bank statments and she didn't even copy all of them! I had to come back like 5 days later and have her copy them again. Plus, she didn't even call me I had to call her to find out if we got the loan! My mother thinks I should show up at the office and demand a better reason and ask to see all the loan docs. My mother works for a loan company but sadly they are the underwriters so I can't really go through her company.
I am all broken up because I just don't know how my husband's family is going to react. We were kinda the last hope at Grandpa having a place to live. I wish we had the time to take a few years to do that add on but he is very old. He just turned 95 and the nurse that was taking care of him said she just couldn't do it anymore. To top it off the "girlfriend" he had ran off with all of his savings. I know it sounds crazy but for a 95 year old he still has tons of spunk! His girlfriend was "younger" She is in her late sixites. My mother in-law calls her a golddigger! Oh what a crazy family I married into!

Of course my family is crazy too with my dad who is 50 having a gal who is 25 living with him but that's another story....

 

[pumpkincat210]

ahh,i know how you feel. You should start small with getting a credit card with a 200 dollar limit, and try to build some credit that way. If your credit is checked too much though, they will deny you..I really hate the whole thing myself. But don't worry dear, things will work out.

 

[Shawna]

Aren't your property taxes just added on to your mortgage payment? The only way we could secure our mortgage was to prepay a portion of our property tax with each mortgage payment. Plus, I am not 100% certain, but I think you can write off some of your mortgage with your personal taxes. We can't in Canada, but I have always been jealous that Americans could do that. Also, since you work out of the home, you should be able to write off a bunch of expenses like phone lines, heating etc. I would definitely look into getting a good accountant. You'd be surprised how much you can write off. Good luck

 

[user3]

Quote:

Originally Posted by Shawna Aren't your property taxes just added on to your mortgage payment? The only way we could secure our mortgage was to prepay a portion of our property tax with each mortgage payment. Plus, I am not 100% certain, but I think you can write off some of your mortgage with your personal taxes. We can't in Canada, but I have always been jealous that Americans could do that. Also, since you work out of the home, you should be able to write off a bunch of expenses like phone lines, heating etc. I would definitely look into getting a good accountant. You'd be surprised how much you can write off. Good luck

Nope we didn't have our taxes put in with the mortage payments because it was TONS of extra money for them just to hold the taxes and pay our taxes for us later. Our property taxes are due twice a year. Dec 10th and April 10th. The property taxes are not the problem as much as we don't know how our other taxes are going to turn out. Yes, we can claim things with the mortgage. There are a somethings I can claim for working out of the home but I am not sure how much. I sold my other business, well gave over the clients to someone else and I took on another job but that didn't go too well seeing as the lady that owned the company still has not paid me and it is going to court. I also do daycare on and off but I don't have a license yet.
Our main concern was building the extra room.
My mother is in loans and I spoke with her. She said the grounds for not getting the loan are not "legal" and we need to see the loan docs. My husband & I are going down to the loan office on Tuesday to talk with the manager. I doubt it will do any good but we will see. The two main reasons for not getting the loan: The under-writer didn't like all the transfers within my OWN accounts and he needed 6 months (he had 8) of band records. We can't find July's but I told the loan officer if she needed I could get it from the bank. She never asked for it. The under-writer also made a comment about my paycheck deposits not going into one bank. However, the deposits did go into bank accounts with our names on them and he has the statements. It's a bunch of BS and the I couldn't even sleep last night because I just kept thinking about how I need to calm down before I call these people and blow up on them.

 

[user3]

I finally got to talk with the manager!
ugh! I knew that loan officer was a MORON! She allowed us to go through this whole damn process when she could have just told us from the start that their company has a policy that does not allow people to use more than one bank for deposits due to people faking pay check deposits. The manager gave me name of someone who works with a company that will allow us to have depoists made to different banks.
According to the manager she should have NEVER went ahead with the loan knowing thier policies!
I think I am going to call the loan office that got us the loan for the house first and see if he can do anything.

I can't believe that lady put us throught this mess.

Thank you all for letting me rant on!

 

[kimmy]

i'm glad it seems to be getting sorted out now. some people are just so damn stupid. like...i thought that people working at a bank would know what they're doing because it's people's finances you're talking about, they're kind of important...but i've come to the conclusion that just because they work there doesn't mean they have any idea what they're doing

 

[bluegrassbabe]

Ugh, I hate dealing with the bank. I don't understand the issue with have multiple accounts. I have 4 different accounts and transfer money between them frequently. They are all split between banks because one has the best checking, I have one account for business, another personal, and one I share with my husband, and another bank has the best interest rates for savings. Why in the world would it matter, so long as you had the means to pay for the loan?
Anyway, I'm glad you're getting it sorted through.

 

[joytheobscure]

Quote:

Originally Posted by Zap2it I finally got to talk with the manager! ugh! I knew that loan officer was a MORON! She allowed us to go through this whole damn process when she could have just told us from the start that their company has a policy that does not allow people to use more than one bank for deposits due to people faking pay check deposits. The manager gave me name of someone who works with a company that will allow us to have depoists made to different banks. According to the manager she should have NEVER went ahead with the loan knowing thier policies! I think I am going to call the loan office that got us the loan for the house first and see if he can do anything. I can't believe that lady put us throught this mess. Thank you all for letting me rant on!

So in other words they only want your business if you run ALL your money through them? That is such B.S. these banks nowadays want so much control of your money- I am most certainly anti bank- the whole push to stop people from using cash is another issue I have.

You know what my sister did when she was trying to get a business loan to open up a veterinary clinic back in 1996. She got turned down by the local bank after having SBA approval- she had it all written out a business plan to build the clinic. The bank turned her down in a town with NO vet clinic. She then proceeded to write the banking commission and all of the congressmen state and federal in the STATE- we were (my husband and I and my sister) were living together and I'd be answering the phone to congressmen- needless to say she had her loan approval from that particular bank in less than two weeks after that. BUT that bank then would if she was overdrawn they'd selectively bounce checks to pharmaceutical companies - my sister hates the bank who will be paid off by next fall for her startup loan.

I hope you can find a bank to give you the loan though. I wish the federal government would become involved in protecting the little people instead of big banks, corporations and credit cards.

 

[user3]

Quote:

Originally Posted by joytheobscure So in other words they only want your business if you run ALL your money through them? That is such B.S. these banks nowadays want so much control of your money- I am most certainly anti bank- the whole push to stop people from using cash is another issue I have. You know what my sister did when she was trying to get a business loan to open up a veterinary clinic back in 1996. She got turned down by the local bank after having SBA approval- she had it all written out a business plan to build the clinic. The bank turned her down in a town with NO vet clinic. She then proceeded to write the banking commission and all of the congressmen state and federal in the STATE- we were (my husband and I and my sister) were living together and I'd be answering the phone to congressmen- needless to say she had her loan approval from that particular bank in less than two weeks after that. BUT that bank then would if she was overdrawn they'd selectively bounce checks to pharmaceutical companies - my sister hates the bank who will be paid off by next fall for her startup loan. I hope you can find a bank to give you the loan though. I wish the federal government would become involved in protecting the little people instead of big banks, corporations and credit cards.

It's a company called BeneFicial.
The manager said something about they have an inhouse policy about people only have one bank account for all of their deposits.
I just got fed up with the crap and I am going to try to look into other lenders seeing as how we just got hit with 2 more HUGE tax bills.
My county SUCKS when it comes to taxes.