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Question By
forestliving

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With excellent credit, why did the bank turn us down?
We bought a home 7 months ago. We did not take out a mortgage, but paid cash for the home. It is worth approx $500,000. We are retired, but have an income of around $7500 monthly from a trust. We have $90,000 in a savings account at Wells Fargo. We did recently switch from B of A to Wells Fargo, and we had to short sell a home 4 years ago. Our credit falls into the excellent range, with everything paid on time for the last 4 years. We recently applied for a home equity line of credit in the amount of $100,000 at Wells Fargo for a kitchen remodel and were turned down due to late payments. What on earth do we need to do? We were shocked. We have one leased vehicle that we pay $500/month for but no other real debts. Credit cards are paid in full every month. What else do they need? Perhaps it's the Hispanic surname? Help!

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Try a local credit union instead. Not only are you more likely to be approved, you will probably get a better interest rate too.

Reply by
forestliving

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Thanks, Joules.  Heading out today to do some checking.  It's just frustrating that we've worked so hard to improve our credit.  We have so much equity and the bank won't even lend up to the amount that we have in savings.  I just don't get it.

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I am not sure how you are in the excellent range if you have late payments. What scores are you looking at? The ones here? Lenders usually use a version of FICO scores, so you should check them if you haven't done so yet. Everything else that you stated sounds like you are still a great candidate for a loan. I advise looking around for different lenders, I am sure that there will be many of them lined up to give you a loan. Do a google search to research lenders or check out your local banks.

Reply by
forestliving

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The super late payments were 4 years ago and the recent 2 late paymentss were 30 days and were 2 years ago.  Yes, this site gives us an excellent rating and the rating from Experian is probably slightly lower.  I have disputed 2 of the entries on the credit report which were reported around the time of the short sale because they didn't have it right.  Our loan was sold 4 times before we sold the house.

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