Local / Smaller Bank -how to find them?

Question

Hi all...name's Jugo.

I'm just starting out, currently shopping for financing.

My question is to the Vets:

Upon searching for some LOCAL banks in the area, I was befuddled to find that most banks have more than ONE branch. Duh! 
Okay, so I just want to know what classifies a LOCAL branch as being a LOCAL branch?

For example, do we look for Community Banks in the search? Banks with NO more than 5 branches in the State?

Thanks for the timely responses in advance...

Jugonian

Julian Barnes · Answer

An additional question:

In light of the market downturn / frozen heloc's;

Are smaller/local banks the way to go for LOC's?

Thru online research I read that the BIGGER banks (Wamu,etc.) are freezing existing HELOC's like subzero and placing ballbusting restrictions on the new ones.  
How can one avoid this calamity?

Jugoroian
"Be content to seem what you really are."
-Marcus Aurelius

Julian Barnes · Answer

MGill,
Be easy...
Wow, us rookies have to go through ALL THAT just to get financed on a 1st loan?

I was, and still am, under the impression that you build relationships and "ins" through ACTION. By actually doing a deal!  I know that networking is key, as I totally respect your position, but my 9-5 takes the majority of my time.  Honestly, I found that NO realtors/lawyers would even talk to me, seriously, if I was'nt already pre-approved and ready to move.  The ones I did get contacted to were all sucking on the teet of Mr. Whale @ BigBank&Trust and treating me like as if I were a nobody b/c I did'nt have 10 houses under my belt. 
I dont know, call it bizarro world...

When you say "contacts" do you mean people who can make decisions @ the bank?

Whatever happened to "Hi Mr. Loan Officer, I'm Jugo. Can you help me find a good program for my 1st time homebuyer needs? I'm looking to build a solid longterm relationship with a bank I can trust."

As for a "team" as you mentioned,  my attorney, my contractor, even title company are all in the game and ready to score me some huge buckets. The only one on injured reserve is Mr.PreApproval.

Jugo
"A man's worth is no greater than his ambition." 
-Marcus Aurelius

Matthew Gil · Answer

Back to the topic at hand...

You are going to need a name and a vector.  Simply having a bank's main number is not going to cut it.  You will have to have an in.

This is where you turn to your team.  Ask your Realtor, Realtor's broker (boss), your lawyer, your insurance agent, your title company's closing agent, appraiser, other small business owners, etc. for a reference.  Heck, your attorney and realtor's boss should be able to give at least 10 solid contacts.

I can't say this enough, you got to get the name of a AvP, or VP of commercial lending at that community bank.  Small businesses that have been in business a while have a go to guy at a bank, get that go to guy's name and number and you are half-way there.

Next, you have to meet, share your "vision" and provide financials, but that is a story for a differ thread.

Stephen McKee · Answer

Great link Bob, thanks a bunch.

Hey josh, do we have this link posted on the sigh some where.

Julian Barnes · Answer

Okay..great info Ash01.  Thanks greatly....  8)

I too, have been around the world of Mr. Whale Big Bank and have now come full circle. This gem is priceless....

Here in my part of NC, we have about 10-15 communtiy banks within a 15-20 mile radius of each other.   Brilliant!  God is good!

Based on your experience(s),  can you give me some questions I need to ask the LO @ the local community Banks? 
For example:  (Do you sell your mortgages to other Big Banks? What programs do you offer, -HUD/FHA etc.?)

My plan is to VISIT these institutions in person next week, speak w/ them of MY plans of action, and just want to make sure I get the answers and results I want.

Thanks for the info again, and good living to you... :groovy:

Jugo, USA 
"Just crease, crumple; cram. You'll do fine."
-Newman (Seinfeld)

Matt DuSold · Answer

Wow this link is much easier than calling every bank you can find and trying to get connected.  Thanks Bob!

And to make sure I have this right you are wanting a higher number in the 31. Noncurrent loans and leases.  This meaning they have many properties available?

Thanks!

Bob McIntosh · Answer

Jugo,
  Its very difficult to say...

How banks are is dependent upon the community they reside in among many other factors.

I would say that generally community banks are a lot less likely to sell their mortgages once they have made them.  In this market that means that they are a little bit less strict on who they lend to and the terms they want because they have not been hit nearly as hard by the sub prime mess as most other banks.

At the same time, until you have built a relationship up with them they aren't just going to hand you money and say i don't care do whatever :P

Community banks are the way to go if you want to build a longer term relationship with the banker.  Most community banks that I have audited have extremely low turn over.  Many are now run by a guy who started as a teller and worked his way up through the ranks the old fashioned way.  Now imagine if you were the guy who was making him look good as a loan officer and he is now the president... you are probably guaranteed just about anything you want from the bank.

Hope that helps!

Julian Barnes · Answer

Ashamann

Thanks for the response and heads up! :)

In your honest opinion,...are community banks the best in providing favorable options?  (HUD / FHA / FANNIEMAE)

Thanks in advance..

Jugo

Bob McIntosh · Answer

I am an IT Auditor for banks, so I have to frequent that site quite often to get information haha.

One thing I didn't mention before that I should have is that if you know a bank exists and they are not in that list, then you don't want them as a bank.  This means that there is a high probability that they are not insured.  If a bank is not insured there has to be a reason, and you can almost always be sure that reason is not one that is favorable to you...

Julian Barnes · Answer

Alt08,   WHoa.....! 
Thanks for the link and the info. Now that you've broken down the criteria, it makes it ALOT easier to read.  I appreciate totally.

Now it's on..... :groovy:

Good luck on Monday...

Jumerican Express