In the banking arena, I have a very unique viewpoint. Because I am a private money lender I talk to guys with money, lots of money, all the time. They think differently about things than many other people do, but that is for another time.
I am also a correspondent with over 100 banking relationships, especially in Texas and the Southeast “we lend nationwide”, as I know many of these banks firsthand. What I can say is this, some banks are lending, and some banks aren’t. THE AVERAGE PERSON WILL NEVER KNOW WHICH ONE IS WHICH. No Bank will advertise, “Hey, we are near our lending limits and are really just wanting deposits, not lending right now”. Have you ever seen a bank advertise like that? Of course not, it would be a death knell. But that doesn’t mean it is not true. Every bank tells me they are still lending because the sales reps believe it, but as you send the deals in, and they deny perfect deals for nebulous reasons, it is not hard to see what is going on. Some, the honest ones, will tell me the deal on the down low…. their secret is safe with me.
Well, let me tell you, there are banks out there that are truly in the game of lending. And let me tell you, those banks are not just twiddling their thumbs; they are swamped. Take, for instance, the fastest bank I know down in Texas, my go-to conventional bank. They’ve been buried under a mountain of applications for weeks now. Now, I’m not pointing fingers here, it happens. Sometimes, you just hit a streak where the demand outweighs what your team can handle at the moment. So, what’s the solution? Well, lucky for me, as an approved SBA Loan Correspondent lender, I’ve got connections to a whole slew of lenders.
Now, if you’re a realtor, take note: when you’re drawing up those contracts, give yourself plenty of breathing room. Case in point: just this morning, I had a client dive into a contract with a closing date set for May 31st. But here’s the kicker—it’s an SBA LOAN we’re talking about. There’s just no way it’s going to close on time. I advised them to extend it to 60 days, but they were adamant that this was the only shot to seal the deal on what they’re calling the hottest property in town. Whether it is or not, I must do a private loan to close it on time. THANKFULLY, I HAVE MY OWN PRIVATE MONEY THAT WILL LEND ON A BRIDGE TO SBA. So we will get it closed on time and I will refinance him out in 4-6 months. If they just would have given it 60 days, it could have been one loan. Realtors give the contracts time…the banks that ARE lending are backed up…they take time, it is what it is.
If you are a borrower, you can hope that the bank you are choosing is one that is lending. If so, GREAT! But if you get an odd denial or it just seems to drag on with no answer, consider a second opinion. Give us a call….maybe it’s NOT YOU. Maybe, it’s the bank. I can tell you quickly which it is and offer a solution potentially. One call is all…512-358-1511. Banks are still lending. Private money guys have lots of cash. There is still a lot of money out there…these things are a positive to fight off the negatives that are also really out there, hiding underneath the Government’s pitch deck of “truthful” numbers….
Where will we go from here? I don’t know. But right now, as we speak, it is busy. Really, really busy. All I can say for sure is what is happening around me, it is busy and that is a good thing. Hope you have a blessed week!
Karen Schimpf
(512) 358-1511
karen@applycommercialloans.com
Give me a CALL TODAY at 512-358-1511 or get started by filling out this form!
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