Many investors and homebuyers may choose to take mortgages out with community banks instead of opting for national lenders. Because community banks are invested in the neighborhoods they work in, they may have a better understanding of area and the particular needs of homebuyers within it.
While these smaller establishments may not always have the excess resources to fully research all relevant property information in the traditional way, they may now take advantage of CRS Data. Its Bankers Suite puts all relevant information within easy reach, and makes it simpler for community banks to make sound lending decisions when it comes to real estate.
For example, mortgage history and information on additional liens on a property can be easily found. Because the debts of the previous two homeowners of a property can become the responsibility of a new homebuyer, it is essential that lenders determine what, if any, additional encumbrances have attached themselves to a piece of land.
The tools allow lenders, including community banks, to search court records for any property tax records, which may be a sign of any liens or additional claims of ownership on a property. This will help an establishment to determine whether or not they are obtaining a free and clear deed to a home.
Small lenders may also easily look up median home values and selling prices in any given area to help them more thoroughly evaluate a property's current assessed value. This may make it easier for the lender to determine of a home value is consistent with local market trends, and therefore a wise investment.
Previous property tax records could also be consulted for a fuller picture of how home value is determined, which can aid community banks in determining if they are making a sound investment. Because a property's assessed tax value may be incongruent with current information, lenders may want to request the lot be reassessed based upon what they find. As property tax factors into loan payments, this can be an important step to ensuring a loan's affordability over time and therefore minimize lending risks for the bank.
Because community banks lack the vast resources that larger establishments have at their finger tips, the availability of online resources like CRS Data makes it possible for them to adequately research are relevant information about a piece of real estate in a short amount of time.
This means that loan applications may be reviewed much sooner, and these lenders can be more confident in their ability to quickly determine whether a particular mortgage agreement is sound.
“I say this…and I can’t say it enough-you have a great product, but you’ve got even greater people. And you are extremely responsive. You have a team that can service all 230 banks in my state.”
COLIN BARRETT - Tennessee Bankers Association