Small local businesses can benefit from community banks and trusts.
Local and community banks are now wiser, stronger and in most cases, provide much better financial service than they did in the past. Bank rates, or mortgage rates have been low, so mortgage lending and Home Equity Loans like (HELOCs) are also starting to make a comeback in Lorain, OH. Home values are stabilizing as well and local mortgage lenders are through the worst of it. With low borrowing rates, it’s been easier to climb out of the slump.
Lenders in Lorain understand local business, local products and generally, how the community operates. They also get to know their clients and can base their lending decisions on more than just numbers - like automated credit scores, lending interest rates and income - to qualify for loans. It may be that local financial service providers are making a comeback, just like the people in their communities. It certainly looks like it.
One of the most notable signs of this, is the new Bank of Bird-in-Hand. a local lender in Amish country. This is important, because it’s the only bank to open in the U.S. since 2010, when the Dodd-Frank law was passed. Here in Lorain, Ohio, it's starting to happen too.
New Regulations for Local Home Mortgage Lenders
Local business owners benefit from their local banks who are serving up mortgage refinancing, new home mortgages and HELOCs.
The new regulations have made it much harder to open any new bank, let alone as a small local bank, whose bread and butter are the people they live with in the same town. The regulatory requirements have made it too expensive. There’s good news for you in Lorain though, because your local banks are now not only safer, but provide much better service to get your local mortgage business.
According to the Wall Street Journal. when a lender denies your mortgage application, you should rebound by going to a different lender. Often, a bank in Lorain, OH is your best bet. And by that, I mean a real local ban k, not a big bank with a local branch. These small community lenders - often family owned banks - may give you more leeway for your particular situation.
In 2007, the Wall Street Journal article continues, that amid the mortgage meltdown, 39.6% of mortgage refinances and 18.7% of home purchase loans were denied. That number is now down to 22.7% in mortgage refinance rejections and only 14.5% new home loan applications being denied in 2013. Even though we’re now in 2015, those are the most recent statistics available. Things are improving for both borrowers and lenders. Also, with low banking interest rates, it’s still very affordable to get a new mortgage or refinance.
Credit Score, High Debt and Changing Jobs
Community banks can assist local business owners to grow their market share.
It’s no surprise that
credit scores, employment shifts and too much debt can result in being denied a mortgage, a refinance, or any credit at all. However, smaller, locally owned financial institutions may be more lenient about your situation, so if you get turned down for a loan from one lender, then go to another one, and another one.
If the loan you’re looking for does make sense, and you really can afford it, then there should be a lender somewhere in Weeping Water, who will lend you the money. But really, check how much debt you have and how much you really make. If you’re 100% convinced that taking out the loan or mortgage is absolutely the right and logical thing to do, you should be able to find a lender.
Bouncing from employer to employer, especially if you move around in Ohio, which can get expensive, will send a signal of instability to a potential lender. Yes, things happen, but you do have control over your future. The banks don’t care that you switched jobs to make more money. What they care about is the risk that you’ll lose your job because you’re new and last one in, is usually the first one out when it comes to layoffs.
Foreclosure to Home Free, as 5-Year Clock Expires
In this New York Times article, Michael Corkery wrote about thousands of homeowners who defaulted on their mortgage payments - during the mortgage crisis – but are still living in them. It seems that after five years of not getting evicted, because the paperwork was not done, the courts may allow them keep their homes after all.
One of the issues, was that the rules have changed so much for lenders during the period after the mortgage crisis began in 2007, they couldn’t keep up with the volume. Part of it was a result of lender documentation disasters. Another part was that the courts were bogged down. So, the statute of limitations may be kicking in for many homeowners, which points to justice not being served when it takes so long. Of course, not paying your mortgage and sending it into default is not the advised route to take. It probably wouldn’t work anymore anyway, since the Dodd-Frank law was passed, and arguably, the pendulum has swung in the the other direction. Which means getting a home loan now is much harder than it was pre-2007.
Finding a Local Bank in Lorain, OH
As in many other searches, Google is your first option. But there’s more to consider when you move into a community. Check to see how many branches a bank has, how many ATMs they maintain and of course what their fee structure is like. As far as technology is concerned, you’re pretty well covered, since most banks use similar systems and security protocols. Whether a bank only has one branch or ten, it doesn’t really matter. As we all know - post 2007 - bigger is definitely not better.
Category: Personal Finance