May 22, 2023 • 21 mins
Online Loans vs. Local Community Bank Loans
In an increasingly digital world, the financial landscape has witnessed a significant increase in online lending platforms. However, are local bank loans still a viable and advantageous option? Join us in this thought-provoking podcast as we delve into the realm of borrowing and explore the key differences between online loans and the benefits of turning to your local bank for home loans with our guests Amanda and Jo Lea, Vice President of Real Estate Lending and Assistant Vice of President of Real Estate Lending for Farmers National Bank in Illinois.
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Episode Transcript
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(00:00):
There's no doubt about it.
The Internet has made it easier for us topurchase almost anything online quickly.
And without having to talkto another person.
But is this a good strategy when it comes
to getting a home loan,especially if you're a first time buyer?
Which is better, going online for a loanor talking with your local community bank?
(00:21):
To help us better understand
the differences and how they can impactthe overall home buying process,
we're speaking with two loan officerexecutives from Farmers National Bank
located in Illinois on thisepisode of Small Business Talks.
(00:42):
There are many options in today's market
when it comes to buying a homeand getting a real estate loan.
Should you go online or work with.
Your local community bank?
One should consider all the reasons
and not simply just the loan rate,especially when it comes to one
of the most important investmentsyou'll make in your lifetime.
To help us better understand these
differences and how they impact customers,we're speaking with Amanda,
(01:06):
the Vice President of real Estatelending at Farmers National Bank.
Angeli, assistant vice president of realestate lending at Farmers National Bank.
Good morning.Welcome to the podcast morning.
Thank you.How are you doing today?
Good.That's good.
We're going to talk this morning aboutonline versus local banks when it comes
(01:29):
to purchasing a home, to getting a loan,a real estate loan
I think I'd like to start out withjust as a baseline is what should
homeowners consider when they're lookingat getting a real estate loan in general?
Let's start there.
They should look at the terms
and the interest ratesand that's kind of just a given.
(01:51):
But they also need to look at the bank
itself and the loan officers that they'reworking with because it's going to relate
to local appraisers,local title companies.
You want to make sure that the borrower iscomfortable with all of those people too.
And it's just nice to have
(02:12):
the connection between all the localplaces working together altogether in one.
It helps a lot.
The loan officer will be able to find outif there's a better product for you
versus a secondary marketloan or an in house loan.
(02:33):
If there's different options that we can
offer you by having that personalone on one connection.
And I'm going to ask right off the bat is
what are the differences between a realestate loan from your local bank and,
like, Farmers National Bank and let's say,the online loan companies?
I mean, the products themselvesaren't a whole lot different.
(02:53):
I mean, Farmers National Bank does offer
all the products that you're goingto find at the bigger online banks.
We have everything right here.
But what you're going to get here isthe fact that we're going to know you
personally and we're going to knowwho we're working with personally.
I just had an example,if you want an example,
but I just had one that I had a borrowerthat went to an online service and they
(03:19):
were buying a home here in our local areaand the whole process was going through
until it came time for there was an issuewith the well and Septic
and the local plumber went out,took a look at it,
gave the borrower an estimate of how muchit will be to fix it, but said,
unfortunately, I'm going to be aboutthree months till I get to it.
(03:41):
The online bank immediately said no,we're not going to do it.
They totally stepped away from it.
They left the borrower in the dust
and said we are not doing thisloan because of that issue.
So the local attorney's office contacted
Farmers National Bank,contacted me because they knew that we
would be more local,we would be more understanding.
(04:01):
We knew the plumber,the services, all that.
So I actually ended up picking upthat loan midstream for the borrower
and we're going to close for hernext week on it because I was able.
To pick it up.
We can work with our local title
companies, attorney's officesand this plumber service.
(04:22):
They were able to get it fixed.
But it was just nice to know
that the local attorney's office thoughtof us and knew that we would be somebody
better to work with than the onlinebank she was trying to use.
That's a great example because I've
purchased two homes,so I know the frustrations of everything
that comes up at surpriselevels at different areas.
(04:42):
So to eliminate that,
especially in the financial end of it,would definitely be a positive.
On there mentioned types of loans.
Maybe you could just coveror talk a little bit about.
What are the different types of loans.
What are loans that Farmers offers?
We offer the 15 year fixed,20 year fixed and 30 year fixed.
(05:03):
Just like a lot of the bigger banks do.
The online then the other feature that we
have, we keep all of ourloans here in our system.
We service them all ourselves nomatter what product you pick.
But if it's somebody that maybe doesn'tfit that 15 2030 year product,
we also have what we call ourin house balloon products.
(05:24):
We can do a five year, a seven year,a ten year, we can amortize them over
a longer period of time if they needit to for payment amounts and such.
But it gives us a lot of flexibility
because we kind of have our own littleportfolio of loans that we can do.
But we also have just exactly what the bigbanks have to with the 15 2030 year fixed.
(05:46):
It sounds like you also can help a buyer
understand what their optionsare more to their needs.
Am I correct in saying that correct?
Yes, definitely.
We can sit down with them and go over eachproduct with them in great detail and see
if there's one that they like better thanthe other and maybe they would feel more
(06:10):
comfortable doing an in houseloan versus a fixed loan.
You start asking them questions, howlong are they going to be in that house?
Maybe they think it's just going to be
a starter house and only bein there for five years.
So they would go ahead and do an in house
loan with us, which is less feesand it's right here with us.
(06:33):
In regards to customer service,
what do you feel is the bigger differencesbetween a local bank and an online bank?
I feel like customer service is if
the borrower wants to, they cancome in and see us face to face.
We offer things that we can do online
and through email,but the customer service end of it,
(06:56):
if they want to comein and see us, they can.
And the fact that we keep the loan on oursystem,
the borrower can always stop in and seeus, ask questions to us about their loan
balance, information,payments, all of that.
They don't have to getonline and look it up.
They can call us or they can stop in.Do you feel that?
(07:17):
Especially,
and I'm going to use the exampleof a first time buyer,
do you find that there's going to be a lotof questions that it really is better
to be able to talk to a personface to face versus an online.
What are your thoughts on that?
Because it sounds like I know when I
bought my first house,there were a lot of questions I had and it
was nice to be able to more sit down withsomebody versus just be on a computer.
(07:40):
Definitely good to do that face to face,
especially with thosefirst time home buyers.
It's nice because we can sit down,run all the numbers for them and we have
a qualifying worksheet that we can goahead and print out and show them as
to how we came up with our numbersand what their monthly payments are going
(08:02):
to be and how those monthlypayments are broke down.
But it's also going to include their other
monthly payments that they have and theycan see how much of their paycheck is
going to go to pay theirrequired monthly payments.
And it's just nice to be able to do
that face to face because they mayhave us run some different scenarios.
(08:23):
Maybe instead of $10,000 they put down,
maybe they put $12,000 down and we'll showthem how much PMI is going to be
for the month and how muchthat adds to the monthly payment.
So it is nice to do that face to faceand explain all of those terms to them.
(08:44):
If they have questions.
There's many of them that don't understand
what PMI is and howto prevent that monthly fee.
So it is good that we can sit downwith them and run many examples for them.
I would think it would also add a trust
factor just to me, especially forsomething as large as purchasing a house.
(09:04):
You want to know that you're making
the right decisions and do youfeel that like, face to face?
Do you ever feel that people feel more
comfortable that way or whatare your thoughts on that?
Yeah, I do because I don't mind doing it,but I feel like they want more hand
holding when it's their first homeand by able to come in here and stop
(09:26):
in and see us anytime or callus or text us or whatever.
I feel like we're giving them
that handheld service that they need whenthey're a first time home buyer and it
makes them feel a lot moreassured that they've got that.
It's a big step buying a home.
And if they've got somebody right there
by themselves, by their side that they cantrust, it definitely makes them feel
(09:49):
a little bit more comfortableand relaxed about it.
But what are some of the past situations
where a borrower may have had an issuethat a local bank was able to solve using
a more common sense approach versus how itwould be handled through an online bank?
I know you already gave the one about
the plumber coming outand giving that is that typical?
(10:09):
Does that come across a lot?
I have had that situation,yes, many times before.
And one of them, too,that I had the situation was I was
actually at the title company,and we were closing a purchase.
And so you've got your title company
people there, you've got your attorneythere, and you've got your borrowers
there, and something hadhappened along the way.
And, yes, they had contacted us again,
(10:31):
and we had made the loan and goteverything to come through.
And I remember the attorney looking at his
client and saying,this is why I tell people to work
with Farmers National Bank or local banks,because look what just happened.
They were able to get you out of that mess
that you were in and we still wereable to get you in your home.
(10:53):
And the title company,they totally agreed too.
They're like, it's just so much easier
to be able to call you guysup if there is an issue.
But it felt good that the attorneysand the title companies both said,
this is what we tell people and this iswhy we tell them that you need to go
to your local bank because they're goingto be able to, yes,
have a common sense approach, figure thisout, and you're going to get your home.
(11:16):
And it's interesting you should bring up
that example because I was just aboutto ask that there's other things involved
when you buy the houseand you just mentioned it.
There's attorneys,
there's title companies,there's a lot of people you work with.
The advantage of working with a local
bank, it sounds likethat affects the relationship.
Whereas if you're online,
if I'm correct in saying this,it seems a bit disconnected.
(11:41):
Do they offer it all online or do you haveto kind of get your own thing and then you
have to kind of work throughthis all electronically.
And that's where I'm thinking, again,being more working with a local bank,
it kind of all works togetherand also people know each other.
Tell me about that relationship,how that works.
Well, I think if you're doing something
(12:02):
online, you're not going to meetwith your lender at all.
They're just going to sendeverything exactly electronically.
They're going to send somebody to yourhouse to notarize your loan documents.
You're not going to seethe title company people at all.
So to me that is not very personal.
And the relationship that you build.
(12:25):
Then with the title companyand the attorney's office and the bank,
I feel like you got your purchase and thenthese people come back to you again.
If they need something else,a refinance, a second mortgage,
something like that, they're going to comeback to you because they're going
to remember that they've built theserelationships and that the bank has
the relationships with the peoplethat we need to make this all happen.
(12:48):
The local banks know the title companiesprocedures and everything that they need.
The title companies know what we need
and when we need it in a timely manner,the same as the attorneys.
The attorneys know how we process things
and we know how those localattorneys process things.
(13:09):
And when they want stuff,we make sure we get it to them.
So everybody's working together as a team
to make sure that this process goesthrough so that they can purchase their
home on the day that they wereplanning on purchasing their home.
My point would be there's so many
different wheels in motion during buyinga house and it just seems if everybody
(13:29):
knows everybody and like you said,you know each other's procedures and how
you do things, number one,it makes the entire process go smoother.
And number two, I would imagine it's goingto fit more to what the buyer's needs.
Are they're going to be more successful if
there are ways of figuringout what things are?
Whereas if you do everything purely
online, if you miss something you're doneor like you said, they had the one glitch
(13:54):
come up and all of a sudden we don'twant to take the loan anymore.
So it just seems like there's a tremendousvalue in working directly with the bank
in your community,like Farmers National Bank,
because you know the people,you know everybody involved and that just
makes it a much smootherprocess for people.
(14:14):
I would agree with that completely.Yes it is.
Because you got to fit the box and check
all the boxes when you'reworking on something online.
Whereas yes, we are going to adjust
and we're going to do things that makesense to us and still get it accomplished.
We're definitely more flexible and handson and can work through those situations.
(14:38):
We may have to just pick up a phoneand call the realtor or call the attorney
or the title company and ask, hey,can we do it this way instead?
And we'll be able to find a wayto work around something.
Well, why do people go online to doall this stuff versus going to a bank?
Do you hear feedback from people about,
(15:00):
well, the online does this or somethingbetter than this and something that you
can kind of say, well,these are some of the myths.
Again, I don't want to get youinto trouble or get you into something you
can't talk about, but that's kindof the area I want to kind of focus on.
What are your thoughts on that?
When I've asked people that I think
the myth is that the online has the betterinterest rates, which is not true.
(15:23):
And I think the other thing they think isthat I think the online advertises really
cheap closing costs,but they don't read the fine print.
And then once they get into it and realize
how much these closing costs are goingto be, that's when they get shocked.
Because I think that the online does somefalse advertising, so to speak,
whereas we will tell you exactly whatthe closing costs are going to be.
(15:47):
There isn't anyfine line or anything on that.
We give it to you straight up.
And honestly,another myth I think that I heard people
say, too, is that they're a littlenervous, especially the first time home
buyer, people are a littlenervous to maybe talk to someone.
So I think they think that they're goingto take this online route
(16:10):
just to kind of see how this all goesbefore they sit down and talk to somebody.
And those people, I have found,
then when they come in and talk to meat a local bank, they're like, well,
this was way more comfortable thanI thought it was going to be.
I wish I would have done this first.
Doing the online, that wasjust a waste of my time.
They also advertisethat it's easy and fast.
(16:35):
No real estate loan is going to be fast.
It's going to take time.
So they advertise that it'sgoing to be easy and fast.
And again, like Amanda said,there's a lot of hidden fees with those
online loan or those online companiesthat they don't disclose up front and you
(16:55):
will get all of your feesand the costs up front with us.
How often do you hear people that theystarted online and decided to just come
to Farmers National Bankand go ahead and just go?
Your routehad a handful of customers and they regret
that they ever submittedtheir application.
(17:18):
I would say probably about 25% of who weget, I would say thought about the online
avenue, went that way and decided, no,that was not going to work for them.
I was just curious because I'm wonderingif it was more first time home buyers or
if it's somebody that maybethey've gone through that process.
(17:39):
But again, it would seem almost if you've
gone through the process,you'd know how much more advantages are
of dealing with somebody in personversus something online.
Yeah, I would say in my experience,it's mostly the first time home buyers
because they just don't knowwhere to start and what to do.
And then when they actually come
in and talk to us, they realize,yeah, this is what we should do.
(17:59):
Some of the youngerfirst time home buyers,
I think the younger crowd like to doeverything online and they'll try and do
something online versus picking upthe phone or walking into the bank because
that's just what they're used to,is everything online.
I agree with that.
(18:20):
So what does Farmers National Bank offerto somebody that's just getting started
on their first purchase or they'reabout to look at a real estate loan?
What are some of the thingsthat you offer?
Some of the things that youoffer to help people?
You can go to our website
and we've got under residential funding,we have our online application right there
(18:42):
that you can complete and sendit back to us via our website.
We have our rates postedfor our 1520 and 30 year terms.
And we do have mortgage and financial
calculators out there that people can useto try and kind of get an idea of what
(19:03):
they would be looking at before theyeven submit the application to us.
So thank you very much for allthe information that you've given us.
This has been really enlightening,especially to, I'm sure,
a lot of first time buyers,first time home buyers
going to leave the last few minutesfor you to wrap up and just tell us
a little bit more aboutFarmers National Bank or other reasons why
(19:24):
people should look at a localbank versus online banking.
Yes, Farmers National Bank,
we've been around for over 120 years,always been a community bank,
and even our branches that we have arein small hometown communities
and everybody gets involved in thosecommunities in some way, shape or form.
(19:47):
We're proud of the bank and weare proud of our communities.
The loan officers are very supportiveof local organizations and they're
actively involvedwith their families in the communities.
So when you're working with those loan
officers, they're going to bein the communities that you're moving to.
(20:12):
Well, Amanda, Julie, thank you very much.
For helping us kind of guide us throughboth online banking versus you're getting
a real estate loanthrough your local bank.
You've been very informative and helpingus understand more of those things.
We will put your web address
in the Show Notes so that peoplecan contact you directly.
Is there a phone numberthat people can reach you at?
(20:33):
Yes.
In profitstown it would be 815-537-2348,Morrison.
Would be 815-772-3700 and Geneseel
would be 1309-944-0580.
(20:55):
Well, again, thank you for all yourhelp and knowledge about this topic.
And again, thanks for beinga part of the podcast.
You.Thanks.
Thank you for listening to our podcast.
We don't monetize this podcast and ask
that if you enjoyed the episode thatyou'll subscribe to our channel and tell.
A friend about us.
(21:15):
We'd also like to hear your feedback
and invite you to contact usat the email listed in the Show Notes.
There's no doubt about it.
The Internet has made it easier for us topurchase almost anything online quickly.
And without having to talkto another person.
But is this a good strategy when it comes
to getting a home loan,especially if you're a first time buyer?
Which is better, going online for a loanor talking with your local community bank?
(00:21):
To help us better understand
the differences and how they can impactthe overall home buying process,
we're speaking with two loan officerexecutives from Farmers National Bank
located in Illinois on thisepisode of Small Business Talks.
(00:42):
There are many options in today's market
when it comes to buying a homeand getting a real estate loan.
Should you go online or work with.
Your local community bank?
One should consider all the reasons
and not simply just the loan rate,especially when it comes to one
of the most important investmentsyou'll make in your lifetime.
To help us better understand these
differences and how they impact customers,we're speaking with Amanda,
(01:06):
the Vice President of real Estatelending at Farmers National Bank.
Angeli, assistant vice president of realestate lending at Farmers National Bank.
Good morning.Welcome to the podcast morning.
Thank you.How are you doing today?
Good.That's good.
We're going to talk this morning aboutonline versus local banks when it comes
(01:29):
to purchasing a home, to getting a loan,a real estate loan
I think I'd like to start out withjust as a baseline is what should
homeowners consider when they're lookingat getting a real estate loan in general?
Let's start there.
They should look at the terms
and the interest ratesand that's kind of just a given.
(01:51):
But they also need to look at the bank
itself and the loan officers that they'reworking with because it's going to relate
to local appraisers,local title companies.
You want to make sure that the borrower iscomfortable with all of those people too.
And it's just nice to have
(02:12):
the connection between all the localplaces working together altogether in one.
It helps a lot.
The loan officer will be able to find outif there's a better product for you
versus a secondary marketloan or an in house loan.
(02:33):
If there's different options that we can
offer you by having that personalone on one connection.
And I'm going to ask right off the bat is
what are the differences between a realestate loan from your local bank and,
like, Farmers National Bank and let's say,the online loan companies?
I mean, the products themselvesaren't a whole lot different.
(02:53):
I mean, Farmers National Bank does offer
all the products that you're goingto find at the bigger online banks.
We have everything right here.
But what you're going to get here isthe fact that we're going to know you
personally and we're going to knowwho we're working with personally.
I just had an example,if you want an example,
but I just had one that I had a borrowerthat went to an online service and they
(03:19):
were buying a home here in our local areaand the whole process was going through
until it came time for there was an issuewith the well and Septic
and the local plumber went out,took a look at it,
gave the borrower an estimate of how muchit will be to fix it, but said,
unfortunately, I'm going to be aboutthree months till I get to it.
(03:41):
The online bank immediately said no,we're not going to do it.
They totally stepped away from it.
They left the borrower in the dust
and said we are not doing thisloan because of that issue.
So the local attorney's office contacted
Farmers National Bank,contacted me because they knew that we
would be more local,we would be more understanding.
(04:01):
We knew the plumber,the services, all that.
So I actually ended up picking upthat loan midstream for the borrower
and we're going to close for hernext week on it because I was able.
To pick it up.
We can work with our local title
companies, attorney's officesand this plumber service.
(04:22):
They were able to get it fixed.
But it was just nice to know
that the local attorney's office thoughtof us and knew that we would be somebody
better to work with than the onlinebank she was trying to use.
That's a great example because I've
purchased two homes,so I know the frustrations of everything
that comes up at surpriselevels at different areas.
(04:42):
So to eliminate that,
especially in the financial end of it,would definitely be a positive.
On there mentioned types of loans.
Maybe you could just coveror talk a little bit about.
What are the different types of loans.
What are loans that Farmers offers?
We offer the 15 year fixed,20 year fixed and 30 year fixed.
(05:03):
Just like a lot of the bigger banks do.
The online then the other feature that we
have, we keep all of ourloans here in our system.
We service them all ourselves nomatter what product you pick.
But if it's somebody that maybe doesn'tfit that 15 2030 year product,
we also have what we call ourin house balloon products.
(05:24):
We can do a five year, a seven year,a ten year, we can amortize them over
a longer period of time if they needit to for payment amounts and such.
But it gives us a lot of flexibility
because we kind of have our own littleportfolio of loans that we can do.
But we also have just exactly what the bigbanks have to with the 15 2030 year fixed.
(05:46):
It sounds like you also can help a buyer
understand what their optionsare more to their needs.
Am I correct in saying that correct?
Yes, definitely.
We can sit down with them and go over eachproduct with them in great detail and see
if there's one that they like better thanthe other and maybe they would feel more
(06:10):
comfortable doing an in houseloan versus a fixed loan.
You start asking them questions, howlong are they going to be in that house?
Maybe they think it's just going to be
a starter house and only bein there for five years.
So they would go ahead and do an in house
loan with us, which is less feesand it's right here with us.
(06:33):
In regards to customer service,
what do you feel is the bigger differencesbetween a local bank and an online bank?
I feel like customer service is if
the borrower wants to, they cancome in and see us face to face.
We offer things that we can do online
and through email,but the customer service end of it,
(06:56):
if they want to comein and see us, they can.
And the fact that we keep the loan on oursystem,
the borrower can always stop in and seeus, ask questions to us about their loan
balance, information,payments, all of that.
They don't have to getonline and look it up.
They can call us or they can stop in.Do you feel that?
(07:17):
Especially,
and I'm going to use the exampleof a first time buyer,
do you find that there's going to be a lotof questions that it really is better
to be able to talk to a personface to face versus an online.
What are your thoughts on that?
Because it sounds like I know when I
bought my first house,there were a lot of questions I had and it
was nice to be able to more sit down withsomebody versus just be on a computer.
(07:40):
Definitely good to do that face to face,
especially with thosefirst time home buyers.
It's nice because we can sit down,run all the numbers for them and we have
a qualifying worksheet that we can goahead and print out and show them as
to how we came up with our numbersand what their monthly payments are going
(08:02):
to be and how those monthlypayments are broke down.
But it's also going to include their other
monthly payments that they have and theycan see how much of their paycheck is
going to go to pay theirrequired monthly payments.
And it's just nice to be able to do
that face to face because they mayhave us run some different scenarios.
(08:23):
Maybe instead of $10,000 they put down,
maybe they put $12,000 down and we'll showthem how much PMI is going to be
for the month and how muchthat adds to the monthly payment.
So it is nice to do that face to faceand explain all of those terms to them.
(08:44):
If they have questions.
There's many of them that don't understand
what PMI is and howto prevent that monthly fee.
So it is good that we can sit downwith them and run many examples for them.
I would think it would also add a trust
factor just to me, especially forsomething as large as purchasing a house.
(09:04):
You want to know that you're making
the right decisions and do youfeel that like, face to face?
Do you ever feel that people feel more
comfortable that way or whatare your thoughts on that?
Yeah, I do because I don't mind doing it,but I feel like they want more hand
holding when it's their first homeand by able to come in here and stop
(09:26):
in and see us anytime or callus or text us or whatever.
I feel like we're giving them
that handheld service that they need whenthey're a first time home buyer and it
makes them feel a lot moreassured that they've got that.
It's a big step buying a home.
And if they've got somebody right there
by themselves, by their side that they cantrust, it definitely makes them feel
(09:49):
a little bit more comfortableand relaxed about it.
But what are some of the past situations
where a borrower may have had an issuethat a local bank was able to solve using
a more common sense approach versus how itwould be handled through an online bank?
I know you already gave the one about
the plumber coming outand giving that is that typical?
(10:09):
Does that come across a lot?
I have had that situation,yes, many times before.
And one of them, too,that I had the situation was I was
actually at the title company,and we were closing a purchase.
And so you've got your title company
people there, you've got your attorneythere, and you've got your borrowers
there, and something hadhappened along the way.
And, yes, they had contacted us again,
(10:31):
and we had made the loan and goteverything to come through.
And I remember the attorney looking at his
client and saying,this is why I tell people to work
with Farmers National Bank or local banks,because look what just happened.
They were able to get you out of that mess
that you were in and we still wereable to get you in your home.
(10:53):
And the title company,they totally agreed too.
They're like, it's just so much easier
to be able to call you guysup if there is an issue.
But it felt good that the attorneysand the title companies both said,
this is what we tell people and this iswhy we tell them that you need to go
to your local bank because they're goingto be able to, yes,
have a common sense approach, figure thisout, and you're going to get your home.
(11:16):
And it's interesting you should bring up
that example because I was just aboutto ask that there's other things involved
when you buy the houseand you just mentioned it.
There's attorneys,
there's title companies,there's a lot of people you work with.
The advantage of working with a local
bank, it sounds likethat affects the relationship.
Whereas if you're online,
if I'm correct in saying this,it seems a bit disconnected.
(11:41):
Do they offer it all online or do you haveto kind of get your own thing and then you
have to kind of work throughthis all electronically.
And that's where I'm thinking, again,being more working with a local bank,
it kind of all works togetherand also people know each other.
Tell me about that relationship,how that works.
Well, I think if you're doing something
(12:02):
online, you're not going to meetwith your lender at all.
They're just going to sendeverything exactly electronically.
They're going to send somebody to yourhouse to notarize your loan documents.
You're not going to seethe title company people at all.
So to me that is not very personal.
And the relationship that you build.
(12:25):
Then with the title companyand the attorney's office and the bank,
I feel like you got your purchase and thenthese people come back to you again.
If they need something else,a refinance, a second mortgage,
something like that, they're going to comeback to you because they're going
to remember that they've built theserelationships and that the bank has
the relationships with the peoplethat we need to make this all happen.
(12:48):
The local banks know the title companiesprocedures and everything that they need.
The title companies know what we need
and when we need it in a timely manner,the same as the attorneys.
The attorneys know how we process things
and we know how those localattorneys process things.
(13:09):
And when they want stuff,we make sure we get it to them.
So everybody's working together as a team
to make sure that this process goesthrough so that they can purchase their
home on the day that they wereplanning on purchasing their home.
My point would be there's so many
different wheels in motion during buyinga house and it just seems if everybody
(13:29):
knows everybody and like you said,you know each other's procedures and how
you do things, number one,it makes the entire process go smoother.
And number two, I would imagine it's goingto fit more to what the buyer's needs.
Are they're going to be more successful if
there are ways of figuringout what things are?
Whereas if you do everything purely
online, if you miss something you're doneor like you said, they had the one glitch
(13:54):
come up and all of a sudden we don'twant to take the loan anymore.
So it just seems like there's a tremendousvalue in working directly with the bank
in your community,like Farmers National Bank,
because you know the people,you know everybody involved and that just
makes it a much smootherprocess for people.
(14:14):
I would agree with that completely.Yes it is.
Because you got to fit the box and check
all the boxes when you'reworking on something online.
Whereas yes, we are going to adjust
and we're going to do things that makesense to us and still get it accomplished.
We're definitely more flexible and handson and can work through those situations.
(14:38):
We may have to just pick up a phoneand call the realtor or call the attorney
or the title company and ask, hey,can we do it this way instead?
And we'll be able to find a wayto work around something.
Well, why do people go online to doall this stuff versus going to a bank?
Do you hear feedback from people about,
(15:00):
well, the online does this or somethingbetter than this and something that you
can kind of say, well,these are some of the myths.
Again, I don't want to get youinto trouble or get you into something you
can't talk about, but that's kindof the area I want to kind of focus on.
What are your thoughts on that?
When I've asked people that I think
the myth is that the online has the betterinterest rates, which is not true.
(15:23):
And I think the other thing they think isthat I think the online advertises really
cheap closing costs,but they don't read the fine print.
And then once they get into it and realize
how much these closing costs are goingto be, that's when they get shocked.
Because I think that the online does somefalse advertising, so to speak,
whereas we will tell you exactly whatthe closing costs are going to be.
(15:47):
There isn't anyfine line or anything on that.
We give it to you straight up.
And honestly,another myth I think that I heard people
say, too, is that they're a littlenervous, especially the first time home
buyer, people are a littlenervous to maybe talk to someone.
So I think they think that they're goingto take this online route
(16:10):
just to kind of see how this all goesbefore they sit down and talk to somebody.
And those people, I have found,
then when they come in and talk to meat a local bank, they're like, well,
this was way more comfortable thanI thought it was going to be.
I wish I would have done this first.
Doing the online, that wasjust a waste of my time.
They also advertisethat it's easy and fast.
(16:35):
No real estate loan is going to be fast.
It's going to take time.
So they advertise that it'sgoing to be easy and fast.
And again, like Amanda said,there's a lot of hidden fees with those
online loan or those online companiesthat they don't disclose up front and you
(16:55):
will get all of your feesand the costs up front with us.
How often do you hear people that theystarted online and decided to just come
to Farmers National Bankand go ahead and just go?
Your routehad a handful of customers and they regret
that they ever submittedtheir application.
(17:18):
I would say probably about 25% of who weget, I would say thought about the online
avenue, went that way and decided, no,that was not going to work for them.
I was just curious because I'm wonderingif it was more first time home buyers or
if it's somebody that maybethey've gone through that process.
(17:39):
But again, it would seem almost if you've
gone through the process,you'd know how much more advantages are
of dealing with somebody in personversus something online.
Yeah, I would say in my experience,it's mostly the first time home buyers
because they just don't knowwhere to start and what to do.
And then when they actually come
in and talk to us, they realize,yeah, this is what we should do.
(17:59):
Some of the youngerfirst time home buyers,
I think the younger crowd like to doeverything online and they'll try and do
something online versus picking upthe phone or walking into the bank because
that's just what they're used to,is everything online.
I agree with that.
(18:20):
So what does Farmers National Bank offerto somebody that's just getting started
on their first purchase or they'reabout to look at a real estate loan?
What are some of the thingsthat you offer?
Some of the things that youoffer to help people?
You can go to our website
and we've got under residential funding,we have our online application right there
(18:42):
that you can complete and sendit back to us via our website.
We have our rates postedfor our 1520 and 30 year terms.
And we do have mortgage and financial
calculators out there that people can useto try and kind of get an idea of what
(19:03):
they would be looking at before theyeven submit the application to us.
So thank you very much for allthe information that you've given us.
This has been really enlightening,especially to, I'm sure,
a lot of first time buyers,first time home buyers
going to leave the last few minutesfor you to wrap up and just tell us
a little bit more aboutFarmers National Bank or other reasons why
(19:24):
people should look at a localbank versus online banking.
Yes, Farmers National Bank,
we've been around for over 120 years,always been a community bank,
and even our branches that we have arein small hometown communities
and everybody gets involved in thosecommunities in some way, shape or form.
(19:47):
We're proud of the bank and weare proud of our communities.
The loan officers are very supportiveof local organizations and they're
actively involvedwith their families in the communities.
So when you're working with those loan
officers, they're going to bein the communities that you're moving to.
(20:12):
Well, Amanda, Julie, thank you very much.
For helping us kind of guide us throughboth online banking versus you're getting
a real estate loanthrough your local bank.
You've been very informative and helpingus understand more of those things.
We will put your web address
in the Show Notes so that peoplecan contact you directly.
Is there a phone numberthat people can reach you at?
(20:33):
Yes.
In profitstown it would be 815-537-2348,Morrison.
Would be 815-772-3700 and Geneseel
would be 1309-944-0580.
(20:55):
Well, again, thank you for all yourhelp and knowledge about this topic.
And again, thanks for beinga part of the podcast.
You.Thanks.
Thank you for listening to our podcast.
We don't monetize this podcast and ask
that if you enjoyed the episode thatyou'll subscribe to our channel and tell.
A friend about us.
(21:15):
We'd also like to hear your feedback
and invite you to contact usat the email listed in the Show Notes.
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