While small banks may not have the lending resources that national chains do, they offer homebuyers community-focused services that they may not be able to get elsewhere. And because small banks often partner with businesses and organizations in their area, they have a better understanding of the local market and lending climate than many larger lending institutions.
For this reason, many potential homebuyers may choose to apply for a home loan with a small bank. While this can be a mutually beneficial transaction, small banks are often tasked with doing the legwork when it comes to justifying mortgages without the considerable resources of a larger entity.
Because mortgage lending is now subject to more stringent verification processes, lenders may have to do even more research to ensure they are abiding by safe lending practices. While buyers will provide ample personal information for banks to use to assess a lenders ability to repay a loan, additional information on the property is needed to ensure that the property is a good investment.
For example, banks may want to make sure the property is appropriately valued. To do this, they can compare a home's asking price to other home values in the area and its past sales history.
Typically, small banks may not have the resources to easily verify this information which can often drag out the application process and impact a buyer's ability to close a real estate deal.
However, small banks can take advantage of CRS Data. It gathers information about assessed home values to help lenders determine if a home is correctly priced and a solid investment. This can save banks time and money and help them to resolve mortgage applications.
Small banks may also want to verify that there are no liens on a home that a buyer was not made aware of. CRS Data's database of property tax records can alert banking professionals if taxes have been paid, which may be a sign of a potential lien. Because liens will stay with a piece of land regardless of whether a deed has changed hands, it is essential that buyers and lenders know that a piece of property is being transferred free and clear of any encumbrances.
A property deed search may usually require interested parties to visit county courthouses or cumbersome websites to research a property's history. However, small banks can access all of this information at their fingertips in real time with CRS Data.
“The quality of our work would not be as good without CRS. And it would take hours to get the work done without CRS."
CHARLIE HARPER - Sunmark Community Bank