O/T Bankers

Ohio Case

Member
Frustration pretty much sums up this post. I'm trying to buy a bigger exsisting building to expand my business into. And the local banker is dragging his heel's about the whole thing. Almost a month since applying for the loan and he hasn't even gotten the appraisal yet!!!!! Now mind you, my company works for the bank, and works for the the bank president/loan officer at his home. This is my home town, lived here almost 50yrs, I've got a college degree, good credit, and the amount I'm looking for is less than $50,000. I cannot for the life of me understand what the hold up is! I called to ask about it today and he mumbles something about waiting on apraisal company, state auditors/reviewers making it tough on them, and other B.S. I remember years ago dad would sign a loan for $250,000.00 to fill a barn with feeder cattle with just a signiture and a handshake!!!!!! Sorry for the long rant, just really frustrated.
 
You may not like what I say.........But $50,000 means very little to them. When I built my home I had to go to a bank to get money to finish the house, carpet, sinks, toilets, paint, and so on.
Well 2 lenders told me that unless I was getting a loan for $100k or more they didnt give a rip about me. I finally found a lender that would allow me to get a $60k loan.
If you were loaning out $200k then they would be calling you into the late night.
 

I have been with credit unions and have not set foot in a bank for 20 + years. My observation is a bank or credit union should be able to outline what needs to happen provide the dates when it will happen. Since your bank has not - I suspect the bank does not have the funds to loan. A good friend of mine was attempting to refinance his house with his long time bank. It was one delay after another - after 6 months - he finally pressed them for an answer to which they replied, "we do not have funds for home loans at this time". He went to another bank and had a loan in several weeks. I bought some land in 2008 and the loan officer told me the date it would go to committee for review and she called me that same afternoon with the news.

They know the process and can give dates - it is probably not your fault - find another bank. Just my two cents.
 
I would find another bank. Also, if you haven't done it before, commercial real estate loans are not like residential loans. The interest is higher, and usually the term is quite a bit shorter, 5 years is common. The amortization schedule can be varied. The appraisal process is different, in that residential appraisers rarely do commercial loans. The next thing is to check on zoning, just because it's commercial doesn't mean it's zoned for your usage. I learned that the hard way, had to apply for a zoning change. Cost some $$. And then, had to apply for a biz license... more $$. I would say that the guy isn't interested in doing biz with you. Look at why? Good luck.
 
When I was building our house I needed to borrow some money to finish. Credit union wouldn't do construction loans. I went to a bank and they loaned me the money. I still do my checking/saving at the CU.

Larry
 
Go to another bank, then withdraw your loan application with the first bank. The first bank may be working with another client who wants to buy the same building, it happens.
 
When your dad done business a hand shake had more value then any amount of assets do today . today it is required that the loan be secure because the general population consider that filing bankruptcy is acceptable and most don't have a conscious either.
 
I don't know all your details Case guy but in this day and age I don't blame the banks for being GUN-SHY! This government we have now is so anti-bank-If you borrow too much-blame the bank! If you can't pay it back-blame the bank! If you loose your job and can't make your payments-file bankruptcy and-blame the bank! The farm bubble burst in the 80's and a lot of farmers and banks went belly-up----Is history going to repeat itself???? If it does we can all---BLAME THE BANK!!!!!!!!!!!!!!!!!!!!!!!!!
 
As a banker myself, I feel for your frustration. The govt is definitely making things alot more difficult. The days of handshake deals are long gone. Absolutely everthing needs to be documented and proven. So it doesn"t matter who you are or your previous relationship with the banker. The bank can get into very serious trouble without all the info. I would contact the bank and talk it through with them. If you are not satisfied with the discussion, there are more banks looking to lend out there
 
I like how smart bankers are. When I was trying to but my first house I went to a bank and applied for a loan. I was paying 60% down, had a job that would enable me to pay the loan back with no difficulty. The smart banker turned me down, said I was 21 single and a bad risk.

This property was four acres and a house. My uncle asked a friend of his who did not even know me to co-sign for a loan where I could buy the house and one acre. Then at a later date buy the remaining three acres.

I paid off the co-signed loan and bought the remaining three acres a few years later. The co-signer became a life long friend. And I saved a ton of money by not having to deal with the bank and their B.S.. That bank actually did me a favor at their expense.

Ask about a contract for deed from the seller. Increase the mortgage on your house. There has to be another way.
 
When I started my business, the bank I had accounts with didn't want anything to do with me when I asked about a loan for operating capital. They also made it a pain to use my own money when I opened a business checking account. My family and I toughed it out and I had very understanding customers and suppliers. Now the bank sees the money that flows through my account and sends out a Rep all the time to "see if I need a loan or credit card". I usually tell them you did not need me when I started, you do not need me now.
 
I would have left that bank.I wouldn't give them the satisfaction of your cash flow passing thru their hands helping to make their deposit sheet look good.
I prefer locally owned banks and have moved more than once as the hometown banks get bought out by the larger ones that are a PIA to deal with.

Vito
 

We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today.

Back
Top