Banks cautious but lending

If you're wondering what it's like to get a mortgage in our area, consider Amy Facer.

The Columbia City resident just closed on her first house and says since she has good credit, pre-approval was a piece of cake.

"They didn't go much into details besides pulling up my credit history and that was it," says Facer. "Once we got to make the offer... it got more in depth where they were looking at my history and looking at my past and getting all my bank statements."

Amy's story is a good indication of local lending practices. For instance, the number of loans Three Rivers Credit Union lent in January and February of 2009, rose 30% from the same time in '08. But that doesn't mean lenders aren't being choosey. Banks like STAR Financial are tightening standards and have a reduced appetite for unsecured credit.

"Certainly, we're being more cautious," says STAR Exec. Vice President Robin Wright. "If you are a customer with good credit with a reasonable income... then there's really no difference. We are making loans the same as we did prior to this scenario."

"We've gone back to what I would consider what is called 'old school' of doing business, which is a fully documented loan," says Mortgage broker Dave Brown. Brown helped Amy get a mortgage. He says if you want one, be ready to provide a few things.

"As a lender, we're really looking to see that a consumer brings credit to the table.... that they have a stable job. That they have income to pay for the payment and that they have some money to put into the transaction."

And so we learned, area lenders are eager to lend. But it's up to the consumer to have everything in order.

"I'm just lucky that I have a stable job," says Facer. "There's a lot of people out there right now that are losing their jobs and I'm just fortunate enough that I'm stable enough in my position that I could go ahead and buy a home and feel comfortable buying a home."