About Bellingham's Fairhaven

So nearly twenty years ago I setup my first banking relationship with a small local credit union. Granted I was 14 at the time and it was really my parents that set it up for me, but I think there's something to be learned from this. As I ventured out on my own I decided it best to use a big well known bank such as Wells Fargo to bank with. I was thinking it provided me more security for my assets and a bigger bank knew what they were doing better, right?

I've recently come to some conclusions which are pushing me to re-think my decision. Granted a lot of this has to do with the current credit crunch, and banks just tightening down in general; however, here's what I've found.

My big bank sucks! Not only that, they are expensive. And not only that, they treat their customers like dirt. I walked in the other day to cash a 3rd party check, as I had done on many past occassions. Whenever there was any question about who I was or what the bank was going to do for me, a teller might call over the manager, who had visited my business a year prior and knew me well. I also maintained balances in all my accounts well enough to cover the check if for any reason it didn't clear. Well my story starts right here. The teller said No. It wasn't a "I'll check", or a "Let me get approval for you", it was a flat "no, we don't do that any more". Naturally, having done this many times previously I asked to speak with her manager. It was also an urgent matter.

Here's where the second bit of change comes in. The manager I knew and liked was no longer there. The new manager says "the teller is telling you the fact, we don't do that anymore". I pointed out I had enough funds to cover any problems, and reminded them I could take my banking elsewhere. It didn't matter, they refused to serve me. Keep in mind, I'm a very long term customer at this point who has not once ever bounced a check or had even a single late payment with this bank.

It must have been within a week after this issue that I got a letter from the bank. I really wasn't expecting anything, but upon opening it my 2nd bit of big bank news arrives. It went something like this: "the credit card you have with us is going up to to 18% interest". Wow, are you kidding me? I maintain decent balances in my accounts for money you can then use for investing and loaning. The bank then pays me virtually nothing in interest. I think Wells Fargo currently pays right near .2% interest; it might and probably is even lower. All this and for a person who has excellent credit, and has never ever ever had a late payment to them or any other bank, they are raising the rate up nearly 10 points. Why? Simple answer is they are greedy, and because they can.

So my days of doing business with this bank are certainly numbered, especially since I discovered an alternative. Taking a lesson from my parents twenty years ago, and having heard local radio advertisments for them for years, I decided to step into one of our hometown local banks. Here's what I found:

1. The 3rd party check is no problem, so long as I have the balance to cover them until they clear.

2. The same people have worked at this bank for 10-20 years. They don't have high employee turnover such as my old bank.

3. They pay me to put my money there! Currently they are paying 1.5% on money just sitting in a checking account, which honestly is the most convenient place for it for me for ultimate liquidity. They pay more on CDs and other savings vessels too.

4. The people are friendly and want to help, in contrast to Wells Fargo's policy of quoting corporate scripture.

The only downside thus far about banking local are a couple conveniences which I've come to rely on over the years. This is making the transition take a bit longer.

1. Their ATM doesn't accept deposits. They do take deposits at the teller or nightly drop box. So now I print a deposit receipt from my favorite property management software, and just drop an envelope in the night drop box.

2. I haven't been able to successfully tie my bank accounts in with my personal finance software. I am told it is possible; however, it's clearly not as easy as it was with the old bank.

So to you AR members. Where do you bank? Big faceless policy driven bank, or a local one?

--- about the author ---

Rentec Direct provides property management software free to landlords and property managers. Because of the importance of thorough screening for prospective tenants, we have integrated tenant screening directly into the software so in just a few clicks a complete and comprehensive background check including previous evictions can be done on any new tenants.

The home buyer tax credit ,which is part of a larger bill that also extends unemployment benefits. has been approved by both houses of Congress and signed by President Obama.

First-time home buyers are still eligible for tax credits of up to $8,000. Buyers will now have to sign a purchase agreement by April 30, 2010 and close by June 30.

The new program will also expand the tax credit to include existing home owners who have owned a home for at least five of the last 8 years will be able to apply for tax credits of up to $6,500 when they purchase their next home.

The maximum price on a home will be $800,000 and vacation homes are not eligible.

The National Association of Realtors says that so far, about 1.4 million first-time homebuyers have qualified for the program and they estimated that 350,000 of these buyers would not have otherwise purchased.

The tax credit will also be extended for another year for military personnel serving outside of the United States until June 30, 2011.

Senator Johnny Isakson, who heavily pushed for the extension, along with his own version that would have increased the credit to $15,000 stated, "this bill will help us boost what is the real problem in the U.S housing market today and that is what is called the move-up market."

Today we got something to help the move up buyers that should help jump start that segemet of the market as well as the first time buyer market.

The Historic Fairhaven District sees growth with new mixed use commercial & residential buildings and refurbishing of the old buildings.

The Morgan Block Building was constructed in 1890, prior to the depression of 1893. This beautiful building has been amidst a tremendous amount of change in the district. In 1969 the building was purchased and turned into a community trust. Over the years this building has housed the Community Food Co-op, an alternative newspaper and currently is home to Artwood Gallery, Good Earth Pottery, plus the upper floors are used as studio space for artists.

If you have been to Fairhaven lately, you probably noticed the scaffolding in the front and along the side of the building. As of today, the repair work is complete and this beautiful building shows the same exterior as it did when it was completed in 1890.

Looking for a safe and easy place for the little ones to Trick or Treat? Look no more... The Historic Fairhaven District is known for it's fun & spooky environment for ghouls and goblins alike.

No need for a map! Most business participate in the event, just look for the sign at the door way and the wonderful decorations that will draw you in. Many shopkeepers get into the event with their own costumes and meeting you at the door with treats.

And of course, don't forget to stop by the Fairhaven Pharmacy for your free photo session. Gordy Tweit has been taking photos at Halloween for over 40 years and post them in the windows of the pharmacy for everyone to see the following days. You just have to stop back by the shop and pick up your memorable photo during the following week.

Be sure to check out the Events listings on Fairhaven.com for more fun things happening in Historic Fairhaven.

Another common question from buyers as well as sellers is, "what are my closing costs?" Some typical closing costs in real estate transaction are

Title search fees - is the assurance of clear title to the property and title insurance to defend against any future claims made on the title by circumstances that were not picked up at the time of the title search. This fee is based on the price of the transaction. It will vary from one company to another but they usually pretty close to each other. Traditionally the seller will buy the title insurance policy to protect the buyer, and the buyer will buy a title insurance policy to protect the lender that is providing the loan for the transaction.

The appraisal fee - this fee is paid by the buyer to have a professional appraiser give their value of the property. The appraisal is based on recent comparable sales.

Prorated property taxes, utilities, and association fees - these fees are based on the percentage of the year, or month in terms of utilities such as water and sewer, that you own a home.

Insurance fee - you can usually expect to prepay the first year of your insurance premium

Recording fees - these are fees charged to record the change in ownership usually by the county.

Document fees - these can be fees for drawing up different documents involved in the transaction.

Escrow fees - this fee is usually shared by both buyer and seller and pays for the escrow company that is handling the transaction.

Credit report fee - this fee is for the lender to render buyers credit report.

Other miscellaneous fees - these can include courier fees, electronic transfer fees, flood determination fees, digital storage fees, retrieval fees, underwriting fees, wire transfer fees, tax service fees, e-mail document fees. You won't necessarily be paying all of these, but you will pay some of them.is

Loan origination fees and discount points - the loan origination fee can vary from 0.5 % to about 2% of the loan amount pays for the cost of providing loans. Discount points are percentage of the loan amount paid to buying down the loan rate, resulting in a lower monthly payment.

Sellers additional fees - the seller will also pay a percentage of the sales price in excise tax to the county, and commissions to real estate agents.

You real estate agent can usually give you a pretty close estimate of what most of these fees will be.