How To Chose a Bank

Question

Hi All!

Being based in Philly. Which banks who you recommend working with for loans and why?

Thanks!

Shera Gregory · Answer

I'm not in Philly but in general local banks or even a credit union can be a good option vs the national banks. It also depends on how you are holding title to the property. If it's in an LLC then you are probably going to have to talk with the commercial lending side of the bank. Some will require that you have an account at their bank so it's also worthwhile to find out if they have free business checking. If you don't have a specific deal that you want to finance right now then come up with a description of what you are targeting and call a few of the banks to ask what they can do for that type of deal. Some banks are pulling back on terms (ie dropping from 20 or 25 year amortization to 15). If you are going for a commercial loan please be aware that a "25 year amortization" is NOT the same thing as a 25 year loan. The rates will likely reset every five years and you may have to requalify every five years. Ask about that too!

Thomas S. · Answer

Use a mortgage broker and let them shop the loan market for you. You need a broker on your team.