Dealing with banks!!!

[R_Walter]

It's a combination of talking to her in person and e-mails. I've dealt with her in the past and she just seems kind of lost. The last time I saw her in person, I asked how an appraisal could be done before the building was up and she said it would be done after the building was up. It's like she doesn't know what's going on and maybe has to go to someone else? How many years do you have to be in a job to figure out what you're doing? It's very frustrating.

I've had banks do an initial appraisal for the construction loan before construction starts based on the existing land and the 'as-built' drawings. Then they've updated the appraisal after construction is completed before funding the permanent loan.

This process used to be pretty common and I assume it still is.

 

[Industrial Toys]

Buildings don't usually add to the value of a place in relation to what they cost. They probably want to make sure they can recover their money somehow if things go wrong. They are not nearly as excited about your new building as you are, to put it quite mildly!

 

[Arc weld]

Arggg.ullinghair: It's getting more frustrating dealing with this woman at the Credit Union. A couple weeks ago she says she could do the mortgage over a 10 year amortization with a payment around $572.00/month and a 2 year fixed rate of 2.74%. I said I would be comfortable paying a little more, like $700 something, so maybe an 8 year term might work. Now she comes back says the loan is approved but only over 72 month's with a payment of $912.00 and a 2 year rate of 3.04%. Then she says she has to send someone out to do an appraisal. I've told her a few times I have to get the development permit approved before I pay $400 for an appraisal. $572 to $912 is a pretty big jump and how the heck did the interest rate jump .30% in 2 weeks? I think I might be better off finding another bank to transfer my mortgage and close my account at this ridiculous Credit Union. She hasn't been consistent with anything!!! :duh:

 

[SPIKER]

Sounds like as 30 yr is at lowest point in several years.

 

[jaotguy]

what is stopping you from shopping at 2 or 3 other places at the same time ?

ask how long they have been doing XXXXXX ( fill in the answer ) and look for someone with over 10 years at it ... or ask for a more senior person who has more experience with XXXXXX ....

take Ed's advice , take notes and have them send /fax / e-mail you the specifics required and in what order ... and their best rate based on XX years .....

type up all the relevant data ( building size , construction details , etc ) and hand them to each of the prospective loan officers ... so everyone is on the same page when you walk in .... have copies of all your necessary records for your application .....

then tell them , whoever has the best deal gets your business .... and specify a date that all the loan officers must respond in full by , or they are automatically dropped off the list ..... stops them from letting things drag out or work on it when they feel like it .....

if any call and say " when can you come in and sign " just tell them you are still waiting for the other companies to respond with their offers.

walk into the credit union and ask to talk ( politely) with the manager ... discuss the conflicting answers with him and ask for a more seasoned person to serve you ... then hand them the same sheets as the others ....

 

[Fawken]

I don't know how, but I always pay cash (or credit card and pay off as soon as it bills) for my buildings. Last one was 40x40 with an upstairs office and shop and horse groom room below. Slab $1400. Building shell erected by Winslows $9000. Inside finish out with hot water and bathroom $5400. It took about 12 weeks from grading to finish out and so the expenses were spread out.

 

[Arc weld]

what is stopping you from shopping at 2 or 3 other places at the same time ?

ask how long they have been doing XXXXXX ( fill in the answer ) and look for someone with over 10 years at it ... or ask for a more senior person who has more experience with XXXXXX ....

take Ed's advice , take notes and have them send /fax / e-mail you the specifics required and in what order ... and their best rate based on XX years .....

type up all the relevant data ( building size , construction details , etc ) and hand them to each of the prospective loan officers ... so everyone is on the same page when you walk in .... have copies of all your necessary records for your application .....

then tell them , whoever has the best deal gets your business .... and specify a date that all the loan officers must respond in full by , or they are automatically dropped off the list ..... stops them from letting things drag out or work on it when they feel like it .....

if any call and say " when can you come in and sign " just tell them you are still waiting for the other companies to respond with their offers.

walk into the credit union and ask to talk ( politely) with the manager ... discuss the conflicting answers with him and ask for a more seasoned person to serve you ... then hand them the same sheets as the others ....

That sounds like good advice. This woman has been doing loans for at least 10 years. I've dealt with her quite awhile ago and thought she was kind of lost back then. It's like nothing has changed. I'd guess there's good reasons why she's never been promoted. Would it be good to ask her how the interest rate jumped so much in a couple weeks and why 10 years get cut all the way down to 6 years? I'm wondering if they're trying to manipulate me like I'm high risk and should just accept what ever they offer?

 

[Arc weld]

I don't know how, but I always pay cash (or credit card and pay off as soon as it bills) for my buildings. Last one was 40x40 with an upstairs office and shop and horse groom room below. Slab $1400. Building shell erected by Winslows $9000. Inside finish out with hot water and bathroom $5400. It took about 12 weeks from grading to finish out and so the expenses were spread out.

$16,000 I'd probably pay cash but the building is going to cost $40,000 plus. If I was buying a new truck for $40,000 I'd be approved in 5 minutes. I don't think it's smart to throw all my money into the building and be broke if something else comes up. I paid off my credit card off and it's a heck of lot higher interest than a loan.

 

[MinnesotaEric]

Get to know your banker and develop a relationship. Smaller, local or regional banks are best unless you need notes over 10m.

 

[Arc weld]

I've been dealing with this smaller town Credit Union since 1978. How long should it take for them to realize I'm not a risk and pay my bills?