Evening star., 1937-01-16
BOWIE DESCRIBES
FINANCING STEPS
Rust Company Executive
Lectures to Students in
Real Estate.

4Ile SISpS necessary III 1uldIlCulB
real estate transactions in the Dis
trict were described this week by G.
Calvert Bowie, vice president of H.
L. Rust Co., to students of the real
estate course which is sponsored
jointly by Southeastern University
and the Washington Real Estate
Board.
Roger ]. Whiteford, counsel for
the Washington Realty Board, will
discuss What the Real Estate Bro
ker Should Know About the Law"
at the session of the school to be
held next Monday night Rufus
Lusk will lecture to the class Janu-
airy 25, while Waverly Taylor, we'll
known home builder. will speak Feb
ruary l On Home Building, Designs
and Costs"
Important Activities.
The financing of real estate is one
OF the most important activities in
the real estate field, according to
Bowie, who said: Many people have
a desire to own real estate, home
Tor their family, home for their
business, and to them the sale OF
real estate is a comparatively easy
Task. 1t is very seldom, however,
that such a prospect possesses the full
purchase price, and, even if he did
possess it, in many instances the un-
wisdom of the payment of the full
purchase price in cash is so apparent
That the conSummation of a tranSac-
tion with such a prospect would be
fraught with many obstacles to over
come. This desire to own, therefore,
would mean practically nothing under
these conditions if some means of
financing transaction were not
available. Such a purchaser can so
often take the amount and employ it
IN his own business to his pecuniary
advantage that he would not be true
to his obligation to himself and his
dependents if he employed the major
part of his capital in the ownership
of real estate free of encumbrance.
The very fact that at the present
time, from best available figures, there
are urban mortgages in force approxi-
mating twenty-five billion dollars is
the best corroboration of this state
ment.
Undergoing Changes.
"The methods of real estate financing
have Undergraduate indeed, are still
undergoing-many changes. In so
far as the local situation is concerned,
there are five sources of mortgage
money, and the volume handled by
each source is indicated by the order
in which they are named, as follows:
/. Life insurance companies.
2. Trust companies.
3. Mortgage brokers.
4. Building associations.
5. National banks.
The mechanics of actually applying
for loan are not complicated. The
first step, Of course, is to have the
owner of the property sign an appli-
cation and the forms prescribed for
this use are complete but not labori-
ously exhaustive. 1t is most helpful
to have a photograph accompany the
application. The next step is the
inspection and appraisal by the COM
mittee or individual acting in that ca
pacity for the lender of the money,
and then if acceptable formal COM
'mitment is written, it being quite Gus
tomary to provide in such commitment
that the loan must be closed within
specified time. The application
should, of course, embody all impor-
tant provisions. 1t has always been
true that a property owners record
for good credit is very helpful to him
in obtaining his loan on the best terms
possible, and I think it can be said
without fear of contradiction that
in recent years more and more weight
is being given to the borrowers credit
rating"
Loan Distribution.
II have previously referred to the
figure Of approximately $25, 600 600, 900
of outstanding urban mortgages and
you will no doubt be interested to
know how they are distributed. The
following figures, are, believe, the
best available ones:
/. Life insurance companies So 5000 .000, 900
2. Mutual savings banks $500. 600, 900
3. Building associations $500. 00O. 900
s. 3ersto Members Of Federal Re- '''0o'0oo'0oo
serve System and COM
mercial banks 500, 900 900
9. Mortgage companies.
panies' iie a''titi title insur- n
snce companies and
al otherS---------- Z.4oU,OOu.OOU
Total - Sc3. $50 OOO, 900
You will no doubt also be interested
in how the total volume of mortgages
recorded in this city during the nine
months period ending September 80,
1886 was distributed for the n,Irrnse