lender buckles at the knees

[Rich Weese]

9 months ago, I purchased a large apt building in Dallas. There are some blogs and posts detailing the purchase. After trying several supposed mortgage companies at time of purchase, I'd used most of my due diligence time and sellers were ready to pull the plug. Their underlying loan was coming due.
I wanted this building and needed 65% loan. I went to my local bank, who'd never loaned in the Dallas area. I obtained a short term loan with ok terms. I really wanted a long term HUD loan but didn't have adaquate time.
The reason I bring this up is that I just re-fied the loan with current bank. I told the CFO that I was considering going for a new loan somewhere else. He (the bank) didn't want to lose a good customer. I told him I needed some concessions in order to stay.
The bank reduced my rate 1/2 %, doubled the balloon period, and upped the amortization period. On the 2.8 million loan, I reduced the pmts $3000 per month. There was no loan fee or costs, and a simple 2 page modification of terms.
I"m mentioning this as a piece of advice. If you have a loan, have been a good client and use the "I'm thinking of re-fiing somewhere else", my guess is, the bank will want to compete. They've been burned so many times lately, they're excited about keeping good clients. They want more business and you're a proven customer.
I've gotten a couple more bank loans on a couple smaller deals with almost no qualifying. Don't rule out your current lender due to balloons, recasting etc., without testing your current lender. It worked for me. Rich