The midland journal. (Rising Sun, Md.) 1885-1947, 1931-05-15

never permitted
it's cooperative attitude toward home
building to lessen.
Practically all banks now accept say.
ings deposits which can well be turned
to tho advantage of the home builders.
The construction Of individual dwell
ings requires large amount Of f1nanc-
ing and is thoroughly commendable
enterprise. Necessarily, the aid given
to home builders is governed by the
sound banking rules which have grown
out Of the years Of experience and the
constant studies Of bank practices.
All Of the efforts made to secure
broader real estate loan privileges, to
adjust resources to make it possible to
lend larger sums for long terms, the
Standardization Of mortgage loan for
mulas, and the actual lending of vast
sums on mortgage notes evidence the
desire Of banks to contribute full
measure Of support to the home-build-
ing movement. This is true of all class
es Of banks, but even in more marked
degree of those whose deposits are
largely in the form Of savings and
whose loans are primarily for building
or home purchasing purposes.
Both Sides Protected
The process through which bank
loans are made on real estate is as
simple as the nature Of such an i'm
portant transaction will permit. When
money is advanced the lender must
know that repayment will be made the
specified time. Likewise the borrower
wants to be assured that, after he has
figured the loan on the basis Of his
cohservatively anticipated ability to
pay, he will not be required to do more,
that he will not be disturbed in his eff
forts to work out Of his obligations
under those terms. Whether his agree
ment is to- repay the entire loan in
three or five years, or on monthly or
yearly basis, he wants the assurance
that no additional burdens will be i'm
posed upon him. All of this is settled
definitely in advance.
There is no mystery about any of the
details, and when the negotiations are
complete the borrower knows just what
he may expect and what he will be re-
quired to do to meet his obligations.
Loans made to persons who wish to
acquire homes are not necessarily
building loans. One may wish to pur-
chase home already constructed. In
this form of transaction bank loans are
used very freely because it is the only
kind Of real estate loan some classes
Of banks may make. Others of course,
may lend upon real estate with i'm
provements uncompleted and advance
funds as the construction progresses,
Different styles in home financing have
developed in the various states, and
banks have tried to adapt their facili-
ties to the needs. Whatever character
of assistance is required in any par
ticular instance usually can be found
in some bank in the local community.
Among banks and borrowers for
home acquisition purposes long estab-
lished and thoroughly tested relation
ship exists. Banks are not the only
agencies through which such funds are
available; they do not embody all the
spirit of helpfulness which abounds.
However, through the years of their
cooperation their aid has been Of UNI
questioned value to the home builders
whose efforts to establish a permanence
for themselves have received constant
encouragement. Bankers everywhere
are ready to counsel with their custom
ers about their BODYBUILDING plans and
to assist to the extent Of their ability.
This is being done constantly and the
many advantages of it are not without
recognition.