Use Credit Union, Bank or Mortage Company? - Posted by Henry G


#1

Posted by Henry G on December 24, 1998 at 10:35:21:

Hi Jen(NE),

Thanks for the information. I do plan to use seller or other financing. But in following CS plan, I wanted to pick a lending institution to become familiar and comfortable with. Yesterday I had lunch with an old friend of mine who is now manager of a mortgage company. Based on what you told me and what he told me I’ll go with the mortgage company for the time being. He also has realtors who work through his company that I want to become familiar with. My next step is to get to know the title companies. I like the fact that CS gives me a great roadmap to getting to know the RE community. I would like to go to the CRE convention in Dallas in March, but it will be spendy for me. I live in Alaska. Do you know of other alternatives that may be closer?

Thanks for all your help.

Henry G


#2

Use Credit Union, Bank or Mortage Company? - Posted by Henry G

Posted by Henry G on December 18, 1998 at 07:44:40:

What’s the basic difference between a Credit Union, Bank, or Mortgage company and their approach to financing property. Which do most people prefer? I’m ready to put my CS course to work.-Henry Gurley


#3

Re: Use Credit Union, Bank or Mortage Company? - Posted by Jen(NE)

Posted by Jen(NE) on December 20, 1998 at 13:55:30:

The pros can correct me (as I’m a newbie) but this is my assessment so far:

  1. Bank - conservative, very few investor loan programs. The ones that they do have require 10-30% down of your own money. --Too many hoops to jump through

  2. Credit Unions - good as some (at least my employer CU) charges considerably less for closing costs. Mine will even knock off 1/4% your interest rate for payroll deduction of your payment. However, you need to be a member and I don’t know if many CUs offer investment loans.

  3. Mortgage broker - probably your best bet as they have a wide variety of programs/lenders to choose from. My broker has 5% down investor loans. Call around and talk to them about their various programs.

  4. Seller or other Finance - you didn’t mention this option but keep looking for this route as it’s beneficial not to put bank financing on every property.

Just my perspective so far… Others with more experience can help answer.