I read somewhere that banks are tightening up on home equity lines lately, like they're looking closer at credit scores and debt-to-income ratios. Seems like they're being extra cautious these days... anyone else noticing this trend or am I imagining things?
"Seems like they're being extra cautious these days..."
You're definitely not imagining things. I've noticed banks becoming more selective lately as well, especially compared to a few years ago. A friend of mine recently applied for a home equity line and mentioned the bank asked for way more documentation than they did when I applied several years back. It's understandable though, given the current economic climate—banks are probably just trying to manage their risk carefully. Hang in there, you're not alone in noticing this shift.
I've definitely noticed banks tightening up too. When I refinanced a couple years ago, it felt pretty straightforward—just the usual pay stubs, tax returns, and a quick appraisal. But my neighbor just went through the process last month, and he said they practically wanted his life story. They even asked him to explain some minor deposits in his checking account from months ago... seemed a bit excessive to me.
I get that they're trying to protect themselves, but at some point it feels like overkill. Makes me wonder if this is temporary caution or if we're looking at a permanent shift in lending standards. Has anyone else seen banks easing up again after periods like this, or do you think stricter requirements are here to stay?
