A Wealth of Experience

Jacqueline A. Runnberg, CFP®, First Vice President/Wealth Advisor 

When it takes a lifetime to build a legacy, it’s only natural to want it to last for generations, along with the advisor you entrust with it. What many people don’t realize about Old Second Bank is that we are that advisor. Not only are we the largest provider of personal fiduciary, investment management, wealth management, and trust and custody services in the western suburbs, we were also the first. We are literally second to none, having been in the trust business since 1919. In fact, we currently have $1.16 billion in assets under management for our clients (as of 12/31/2017).

Expertise You Can Trust Close to Home

For nearly a century, Old Second has consistently delivered wealth management solutions to the families that formed the communities we all now call home. While we’ve consistently provided a full range of highly personalized solutions, many of our competitors in this area have exited the business over the decades. Many others consolidated into larger banks and, in the process, shifted their services to central locations outside our area. Meanwhile, at Old Second we have continued to pursue our strategy of providing personalized, well-informed and comprehensive wealth management services close to home.

Our wealth managers and investment professionals average more than 20 years of trust and investment experience. We have the depth and breadth of knowledge to provide all the wealth management solutions and services you need while maintaining the balance of personalized services you expect from a bank in your community.

A Common Sense Approach

When it comes to wealth management, it’s a matter of trust, and you can trust us to take a common sense approach that rests on a comprehensive process for delivering services. These services include:

  • Using a financial planning-based approach, we Identify your specific life goals and financial objectives and assessing your current circumstances.
  • Communicating with you every step of the way and listening to what you have to say rather than talking at you.
  • Involving you, your family members, your beneficiaries and your other financial professionals when appropriate and according to your wishes.
  • Investing the time to build a lasting relationship with you and each generation of your family.

Sound Advice

With a seasoned staff of professional wealth managers, we provide advice regardless of where you are in your financial life—from young families just starting to build wealth to those who are planning for their wealth’s transition. Our distinct and comprehensive approach brings a team of credentialed specialists together to provide advanced financial planning, investment and money management, tax planning, estate planning and administration, charitable giving and wealth transfer. Over the decades, individuals and families like yours have placed their trust in our consistently sound advice as they’ve built and shaped their legacies.

Whether you’re in the early stages of building wealth or looking to preserve the wealth you have, visit us here  or, better yet, give us a call at 630-966-2462 so we can start proving to you that we truly are second to none.

Second to None By Putting Clients First

Juwana Zanayed – First Vice President – Director of Treasury Management Sales 

When the word “second” is in your name, it isn’t really a matter of trying harder—it’s about taking a “second-to-none” approach in everything you do. For this $2.3 billion bank, that means not just keeping pace with industry innovations, but also finding ways to get the latest products and services to our clients as soon as they emerge.

Local to You

This concept of timely delivery is a key component in serving as a niche provider for mid-market businesses. Old Second’s local executive management team helps deliver solutions when the client needs them. From Aurora to Chicago, from Elgin to Joliet, Old Second has provided timely solutions for our local clients.

Businesses also want an accessible treasury provider, not a distant figure you might expect from a large bank, headquartered far away. Availability is one of the hallmarks an Old Second client can depend on, year after year.

Being local to our clients also means our business operates in the same market their business operates. We understand market forces that are unique to our geographic footprint. That firsthand knowledge of the client’s immediate market puts us at an advantage over an out-of-state decision-maker.

Consistency Works

Over 50 percent of our current commercial banking clients have been with us for more than 10 years. Such continuity in a relationship means familiarity. As a business, you don’t want to retell your story over and over. You’d rather work with a bank that already knows you, where you’ve been, how you’ve grown and where you’re headed.

Lasting relationships also mean our clients like what we’ve done for them. We like to think of the longevity of our client relationships as a signpost to the effectiveness of our solutions. Think of a product you have used for years when you could have chosen an alternative. You stick with what gets the job done. Our years of client loyalty speak to the success of our business model.

Decisive and Customized

That’s why customization to the client’s business makes sense. Our loan officers and treasury management advisors are empowered to take direction from their clients. Because we are local, accessible and have a large suite of innovative solutions, we are equipped to provide fitted solutions.

We consider many aspects of a business, including cash flow, automation processes and mechanisms of fraud prevention. And, each aspect of the business is examined in light of maximizing the client’s bottom line.

Once a specialized product suite is assembled, each client is able to manage every aspect of their business via O2 Online Banking. It’s a one-stop-shop dashboard that puts control in the client’s hands. We consider it all part of our “second-to-none” approach.

For more information on our treasury management and commercial banking services, click here, or contact a Treasury Management Advisor directly at 877-866-0202. We can’t wait to talk to you about what we can do to keep your business growing.

The Truth About Student Loans and Mortgage Applications

David M Kozuh, First Vice President Sales—Residential Lending David Kozuh, Vice President—Residential Lending   Things have changed. But, not in the way many potential borrowers think. Many still think it’s harder to get a mortgage than it used to be. Not necessarily. Despite the Financial Crisis of 2007–2008, banks have been helping homebuyers and owners take advantage of the low interest-rate environment all along. Even Millennials, despite their student debt loads, have been getting approved for mortgages. It’s also still possible to get a mortgage with a down payment of less than 20%. And, first-time homebuyer programs that provide money for down payments may even make it a little easier to afford a new home than in 2008. What Has Changed Since the crisis, the process of applying for a loan has improved. Many lenders, Old Second included, have made initiating a loan request even easier, leveraging online and mobile technology for applications, document gathering and communication. But, the biggest change involves the way an application is now processed. It takes longer…much longer. What could be done inside of 30 days in 2008, may now take longer. No home loan lender is immune—we are all subject to the same regulations. And, it’s about to get a little worse. It’s Not You, It’s the New Federal Regulations Whether you are a first-time homebuyer or an experienced homeowner, in the aftermath of the financial crisis there has been a return to the kind of lending standards—operational checks and balances—that most of us have used to apply to loans for decades. Those standards require time to analyze and verify that each mortgage applicant is qualified for and entering into the right type of loan for their financial circumstances. As of Oct. 3, a new rule from the Consumer Financial Protection Bureau, “Know Before You Owe,” will take effect. It is intended to offer additional protection by ensuring you understand the terms and consequences of your loan agreement at closing. This new rule will add a few more days to the closing process for all mortgage lenders no matter how automated their internal processes are. While a degree of patience has re-entered the mortgage process, we believe it ultimately ensures that you’ll gain full advantage of our expertise. Whether it’s a 30-year fixed mortgage, an adjustable rate, a line of credit for remodeling or a refinancing into a 15-year loan that will help you retire mortgage-free, our goal is—as it’s always been—to make sure you enter into the right financing structure.

Student loans are a reality for millions of Americans, many of whom are Millennials with dreams of becoming homeowners. However, contrary to a widely held belief, the two things—student loans and homeownership—are not mutually exclusive. You can afford to have both, even when you use a mortgage to buy your home.

How Student Loans Impact Mortgages

When you apply for a mortgage, the lender will look at your existing debt. That typically includes outstanding credit card balances, car loans and student loans (whether they are deferred or not). We then look at what you are paying toward each on a monthly basis, versus what your make, to determine how much would be left over to make payments on a mortgage.

Generally, lenders are required by the loan programs not to accept an application if your existing debt-to-income (DTI) ratio will exceed a certain level. The last thing we want is to create financial stress by letting you borrow more than you can comfortably afford to repay. However, there are ways to decrease your DTI that can make it easier for you to both afford and qualify for a mortgage.

Manage Your Student Debt

Student loans, especially those that are part of the federal loan programs, tend to have low interest rates and long payback periods. There are also several repayment options available to you to ensure your payments are affordable. Among these is an income-based option, which ties your monthly payment to your income. As your income changes over time, the payment adjusts to what you can afford. For many, this means that they have lower monthly payments in the early part of their careers. That can leave them with enough discretionary income to make mortgage payments while repaying their student loans.

Student loans can also be deferred, which frees up monthly income. Although, when you borrow, we will still consider the loan in our calculations, typically using a figure of 1 percent of the outstanding balance in our analysis of your monthly debt load. However, if you are considering applying for a mortgage through the Federal Housing Administration (FHA) program, your deferment will not be a factor in the DTI calculation.

Other Preventive Measures

Often, the bigger obstacle to qualifying for a mortgage is not how much student debt you have but how well you’ve handled it and how much non-student debt you are carrying. Before applying for a mortgage, it helps to address these factors first.

For instance:

  1. Have a year or more of on-time payments. Know what you owe, when it is due and whom you are expected to repay. Missing payments or a history of late payments will come back to haunt you when you apply for a mortgage.
  2. Manage your debt. Repay credit card balances and establish a pattern of paying them off in full each month. If you are working through an outstanding balance, look for options that might lower your rate and allow you to speed up your payback period.
  3. Carry only your debt obligations on your record. If you have debt but your parents are repaying it or a portion of it, it should be shifted off your record, where it counts toward your DTI, and into their names. Depending on the circumstances, there are a variety of ways to do this. It’s something your lender can discuss with you.
  4. Don’t focus so much on the down payment. There are many first-time homebuyer programs that were designed to make monthly payments affordable, using a low down payment. For some student debt holders, therefore, it may make sense to save for a 3 percent down payment and direct the rest of their discretionary income toward paying down their student loans before applying for a mortgage.
  5. Don’t assume; talk to a lender. We have access to a variety of loan programs and strategies and know which local incentives you may qualify for that would help your cause. As bankers, we are also able to look at your total financial picture for ways to set you up for long-term financial success.

To learn more about your best options for qualifying for a mortgage, whether you have student loans or not, give us a call at 877-866-0202. Let’s sit down and talk about what we can do to help you realize your homeowning goal.