One of the signs that the real estate market may be growing is when the market starts seeing banks lending heavily to consumers for real estate financing . The lending power of banks had been temporarily stifled as a result of the recent recession. However, it seems that banks in West Michigan are reporting more lending in the second quarter, according to recently released data.
The banks in this region, along with more lending, also reported higher earnings. One bank in the region, Mercantile Bank Corp. reported initiating $76 million in new mortgages during the second quarter. New borrowers accounted for $58 million of the mortgages reported for the period. Another $18 million in loans went to existing clients. The bank predicts the increase in new mortgages will increase for the rest of the year.
Another banking firm in the region, Chemical Financial Corp., has also reported higher earnings, which the firm believes resulted from growth in originating home loans. The company originated a total of $4.33 billion in new home loans during the second quarter. This is 9.4 percent higher than the second quarter of last year. Commercial real estate loans accounted for $1.09 billion for the company during the second quarter of 2013.
Many expect the increase in real estate financing to continue throughout the rest of the year for this region of Michigan. However, when one is obtaining a real estate loan, one should make sure to examine the language of the legal contract carefully. There could be some provisions which are hidden in the language of the document which may not be preferable. If this is the case, the consumer may able to negotiate further with the lender.
Source: mibiz.com, " Local banks grow lending, shed foreclosed real estate ," Mark Sanchez, Aug. 4, 2013