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Financial Planning / Tax Strategies
|Subject: Something Funny Going On||Date: 9/26/2012 3:26 PM|
|Author: brucedoe||Number: 116670 of 122099|
My wife and I are scheduled to move into a continuing care facility in about 6 wks. For some weeks, we have been trying to get a $250,000 loan from BB&T on our house appraised at $310,000 by their appraiser. We have provided BB&T with proof of assets of $900,000, but actually, FWIW, we have about a couple hundred thousand more, depending on the whims of the stock markets. Supplying the information they need was like Chinese water torture as many times we supplied the one last bit of information only to be asked for more in a few days). At first we were quoted a loan at 3% on a 7 yr loan, but then, for some reason, they said we would have to pay something like some points because it didn't look as if our monthly income covered the payment enough. I said OK. Today I had a call saying that our loan was REJECTED because we didn't have enough monthly income! My wife gets Social Security and I get 60% of a Federal annuity. The fact that we withdraw some money from our assets when we need to seem not to matter to them.
Now our agent is pursuing a longer term loan or a $250,000 line of credit at prime plus 0.5% or 3.7% (Currently we own the home free and clear. We also own a summer home free and clear and two autos free and clear.). All this seems like bate and switch to me. Our agent says it would be the same no matter what bank we went with.
In the past, I have considered paying cash for the continuing care facility (which is fully refundable to our heirs). I decided against it because we would have to take a lot of money from our IRAs and 401k's and pay a lot of tax on it. But it wouldn't surprise me if we were rejected on the line of credit or a longer loan too, the way things have gone.
They say our credit ratings are not a problem. Equifax rates me at 86%, Experian at 94%, and TransUnion at 77%. Among the things that lower my score, that sounds good to me, is "too many inquiries in the last 12 months," "Time since most recent account opening is too short," and "Length of time accounts have been established." These are something beyond my control. One last one "Too many accounts with balances" is within my control, but I'm unsure what they are talking about as I pay off my credit card every month and I pay ahead to our country club. My wife's ratings are somewhat lower at 76%, 68%, 68%. This is because my wife had a stroke and I have had trouble adjusting to paying her accounts as well as mine so some have been paid late, but I am told her ratings are not the problem.
Does all this sound like on the up and up to you pros?
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