What are Banks Really After?

Wayne — Thu, 17 Sep 2009 17:50:22 +0000

Banks want you to think that they will lend you money…even when they won’t. Why? Because if they can convince you that they will lend to you, you will probably bring in deposits. The more deposits they have, the less risk they have to their bottom line.

What Banks are doing now is really pushing the term “Relationship Banking.” They tell you that they are looking for long term relationships with clients instead of just a loan relationship or one account relationship.

What this really means is “give us your money, and we’ll string you along for as long as we can. By the time you realize that we’ve been giving you the run-a-round we’ll have used your money and made a ton off of you.” This dirty tactic is pretty common these days…so watch out who you bank with!

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Commercial Loans vs. Residential Loans

Wayne — Tue, 08 Sep 2009 07:51:02 +0000

More and more lenders are moving toward commercial loans on investment property over residential loans. There are a few reason for this. Lenders have started to feel that the average consumer doesn’t understand Real Estate Investing. Therefore if you want to be an investor, then you must have a commercial loan

Lenders also prefer commercial loans because they are able to charge higher interest rates, decrease the amortization length, place subsequent reviews of the loan, and even force you to take an ARM product. This all works to the banks advantage. The trick is being able to know to work the banks to come around to your favor.

For properties that turn Average Joes into Real Estate Investing Pros, be sure to visit http://www.wholesalepropertypro.com.

The Investor Mortgage Professional » banks

What are Banks Really After?

Commercial Loans vs. Residential Loans