By Steve Lathrop
Albany Democrat-Herald | Posted: Monday, November 10, 2008 12:00 am
When people think about applying for a loan, their perceptions may be holding them back, particularly when it comes to auto or real estate loans.
"People tell us they don't think they can get a loan," said Dave Abresch, owner of Primasing Motors in Lebanon. "They believe financing isn't available, rates are high and they need a big down payment."
That perception may be keeping many who need a new car or even a home from pursuing the idea at all. And it isn't necessarily true.
"People shouldn't be afraid," said Kym O'Hare of 1st Choice Mortgage of Oregon. "They don't need perfect credit to get a loan."
Recent national economic downturns have translated into a reluctance on the part of consumers to apply for loans. Mid-valley credit unions and banks, however, seem to have plenty of liquidity and have made few policy changes for determining qualified applicants.
"We are operating the same as we have for the last three years," said Elaine Eastman at Central Willamette Community Credit Union in Albany.
The situation is similar with other lenders.
"I think people have a misunderstanding about loans. They think they aren't available when they are. People are more qualified than they realize," said Rebecca Grizzle, of Linn-Co Federal Credit Union in Lebanon.
Eastman said loan applications have been slow for almost a year, particularly in terms of auto loans. People shouldn't be turned off by what they are hearing is going on nationally, she said.
"We have no changes in policy. Good rates are available and most people probably qualify. Our denial rate hasn't increased," she said.
Approved loans are up at Linn-Co and at OSU Federal Credit Union.
"Lenders aren't about to get people into something they can't afford but we're often able to help people even if they don't have perfect credit," said Grizzle.
Mike Corwin says OSU Federal has a solid loan portfolio. He, too, acknowledged that people are reluctant, but suggested they shouldn't be.
"Rates are good. People may be surprised. There are really good opportunities available," he said.
O'Hare agreed. She said it is a buyer's market with homes available and owners anxious to sell.
"People who have been able to get loans in the past can still get loans," she said.
According to Abresch, car dealers are using local lenders more.
"Some national creditors are buttoning up," he said, "but local banks and other lenders are very solvent."