Dealing with banks!!!

[Arc weld]

Has anyone else got conflicting and contradicting information from their bank? I'm looking at financing a pole shed and the woman I'm dealing with tells me one thing one week and then something totally the opposite the next week almost like she's not really paying attention to what's been said. I'm almost at the point where I want tell her to get with the program or I'll look elsewhere. First she says they have to do an appraisal on the land, then she says she would get approval for financing before the appraisal, then she says the appraisal will be done after the building is put up, then she asks for the tax assessment(which I already supplied) on the land because an appraisal might not be needed, I just got my 2015 tax assessment that was about $9000 more and sent that to her. Now she says they will send someone out to do the appraisal once they have the information on the building. This is contradictory to what she previously told me about getting approval before the appraisal. I had previously told her, I want to have my development permit approved before I spend $400 on the appraisal. She's been at this bank for a long time but seems out in left field. How do deal with people like this that seem lost despite it being their job?

 

[dusty3030]

Remember, you are buying a product from them. You always have to remind a banker they aren't doing you a favor but you are considering them as an option.
Second, a bank will only loan you a portion of what you already have, they rarely if ever take a risk.
This person needs to be told by you to wise up or loose this opportunity for your business.
Good luck.

 

[skyhook]

How do deal with people like this that seem lost despite it being their job?

Inform her of her "inconsistency's', write them down before doing this,
then tell her she has you also confused and running around in circles, then tell her you would like to speak to someone who has more knowledge in this matter or you will file a complaint and move on to another bank.

 

[JMER817]

All the banks are the same...I've been thru a variety of transactions the past few years (rental property buy/sell, land purchase, new home build) and have had issues every time and lots of confusion. I have spoken with friends who have had similar issues. Just realize that you aren't the only one and push thru. Once you get the Polebarn up it will be all worth it!

 

[newbury]

Try and correspond via email or get everything in writing so you have a printed record.

It seems the banks often have conflicting "guidelines" and they can follow any guideline they choose.

 

[LD1]

National bank? or a local bank?

I find it easier to deal with a local bank that only has a few branches vs a big national chain.

Any option to borrow the money against something else?

 

[EddieWalker]

Are you going in and talking to this person face to face? I've found that the only way to get something done is in person. Phone, email and text all get confused. I go into the office, shake hands with the person I'm dealing with, sit down and take notes on what needs to be done. Have them make copies of what they want and how they want it. When I leave the bank I have a folder of everything that has to be done, and how they want it done. I've never had any issues doing things this way.

I have had conversations on the phone that didn't make any sense to me. In ever case, I go to the bank right away and talk to that person face to face to find out what is going on. In every case it's an issue or question that has come up from the other party or one of those involved in making it happen, like a surveyor or appraiser. They ask a question to the loan officer who isn't familiar with the property and in trying to ask me for an answer to that question, they get it messed up. Once i'm there and I see what they need, it's easy to provide that answer.

Good luck,
Eddie

 

[Arc weld]

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.

 

[MacLawn]

Arc, I think I'd be looking at another bank or credit union. I had a similar situation, face to face, a few years ago, getting a loan for some remodeling work I was doing. A real mess. I just left the old boy (he was actually about 30 years old. I call everybody an "old boy"), and used one of my credit unions for that loan.

 

[KiotiKowboy]

LD1 asked an important question. Is this a local bank?

If not, you probably need to move your business. Your local banks, especially in a rural area, will have the experience to make these tasks far less irritating.

 

[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?