Jeri Ott, Vice President/Mortgage Loan Originator
When it comes to residential mortgages, most banks offer the same lineup. These off-the-shelf solutions are structured to conform to the mortgage agencies’ guidelines (Fannie Mae and Freddie Mac) so that they can be resold in the secondary market.
As a borrower, this means if your property or financial situation does not conform to these standards, your mortgage request will be denied.
We Do Things a Little Differently
Although we sell some of our conforming mortgages on the secondary market, Old Second actually holds many of the mortgages we originate for our own portfolio.
We do this, in part, because properties in this area tend to be larger and many are income producers, such as farms and equestrian estates. These types of properties don’t qualify for conforming mortgages.
Borrowers who buy vacant land with plans to build their dream home also have trouble obtaining conforming loans. In these situations, not only do we lend, we don’t require our borrowers to offer additional assets to collateralize the loan over the lot’s value. When it comes to construction loans, we’re able to lend 80 percent based on the appraisal of architectural plans. This opens up the option of new construction to more people. We also allow our borrowers to be their own general contractor, which can offer additional cost savings when building on a vacant lot.
Keeping It Local
When we do hold a mortgage for our portfolio, we also service the mortgage. While few borrowers still make their payments at the local branch, borrowing locally means if any questions or issues arise, you know exactly who to call. That accountability is extended to all of our customers, even if we didn’t originate the loan and don’t service it. Advocating on their behalf by jumping on a call with their servicer or escrow agent to clear up an issue—when asked and when appropriate—is just something we do.
While a portfolio loan can be suitable for some borrowers, it may not be the right choice for everyone. Applying for a mortgage just isn’t a situation where one size fits all. That’s why it’s important to sit down with a lender before making any decisions. We can look at your whole picture and help you choose the right mortgage type for you and your property. After all, the costs associated with each loan type can have a significant impact on your finances not only today but also for years to come.
Present at Closing
All of our residential closings are held in our local branches. This way we can literally stay with each mortgage until it’s completed and funded. If last-minute questions arise or documents need amending, we can address them within minutes.
For more information on the different types of loans we can offer, download this handy comparison chart. Then, call us. We look forward to sitting down with you and talking things through so that you choose the best loan structure for your situation.