Lenders continue strong presence at Home Show

Area banks and mortgage companies typically have a strong presence at the annual HBA Home Show, and this year is no exception.

Mike McGoldrick, senior vice president at Metropolitan National Bank Mortgage Center, said having a booth at the show is beneficial both for the mortgage center and its customers.

"We have an opportunity to develop a variety of relationships (at the show)," McGoldrick said. In addition, the show is an opportunity for the mortgage center's employees to strengthen their current relationships with both builders and consumers, he said.

"Being a full-service bank, we have relationships with builders and developers, as well as with the customers who buy the homes," McGoldrick said.

Since Metropolitan has locations in multiple markets, the show also is an opportunity for bank associates from outlying locations to represent their markets.

"People come from all over southwest Missouri, not just the immediate Springfield market. It's a pretty far-reaching event," McGoldrick said.

Citizens National Bank has been participating in the HBA Home show every year since 1990, according to Kathy Davidson, senior vice president.

"At that time, we were about the only bank there," Davidson said. Citizens National had just opened the year before, so participating in the HBA show was good exposure for the bank, she said.

"I feel it has helped us tell people who and where we are. Participating in the show has been a tremendous asset to us," Davidson said.

Peoples Bank will participate in the home show for the first time this year, according to Mike Schatz, senior vice president. The bank's participation in the HBA Remodeler's Show in October was definitely worthwhile, Schatz said, and he anticipates a good experience at the home show. The shows provide an opportunity to renew client relationships and make the bank's products and representatives accessible to potential clients, he said.

Representatives at bank and mortgage center booths answer a variety of questions, and they often explain the process of obtaining a loan.

"We tell them how we can assist them in the whole process, so that building can be a hassle-free project. We can also answer questions about other bank products," Davidson said.

McGoldrick said most people who visit bank and mortgage center booths want to know what it takes to get a construction loan, what terms are available and what they need to do to prepare for the application process.

Be prepared

Before applying for a construction loan, McGoldrick said people should decide how much they want to spend on both the land and the construction of the home. They should also decide on a site, and they should have the design of the home in mind, he said.

Defining the family's long-term goals also is important, McGoldrick said. Before applying for a loan, people should determine how long they'll live in the home.

Choosing a builder or contractor to be in charge of construction and help control costs is also necessary at this point, McGoldrick said.

Davidson said she reminds people not to bite off more than they can chew. "People should keep in mind what they can afford."

Davidson said CNB representatives can help people determine how much they can afford when building a house. They can prequalify buyers based on what loan payment they can afford to make.

"We can assist them in finding the right mortgage that suits their needs," Davidson said.

Schatz said most people admit they are not well versed in the process of obtaining a construction loan.

"Most individuals build one or two homes over a lifetime," he said. Schatz and Davidson agreed that explaining the process to clients is a vital part of helping them obtain a loan.

"Building a home can be one of the most satisfying things you can do, if the experience is hassle-free. We help people have that experience," Davidson said.

McGoldrick said the time is right to build a home. "With interest rates at their lowest since the 1960s, there really hasn't been a better time."