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Here are excerpts from our 4th Quarter 2006 Issue of MoneyTalk$, First Community Bank's quarterly newsletter.

Article 1 REHAB Loans

Article 2 Safe Deposit Box Security

Article 3 Security Pointer-Lottery Winner?

 

 

FREHAB Loans

So you want to buy and rehab a property, but you are not exactly sure how to finance the project? At First Community Bank, these types of loans are our specialty.

The first segment of the loan process is the same as applying for most home loans, simply supply the last three years tax returns with W-2's, one month of pay stubs, asset information, insurance, and loan application.

The second segment of the rehab loan involves the plans for rehabbing the house. You will want to submit the builder qualifications, project cost estimates, line item budgets, and descriptions of materials to be used. The budget should include a 10% overrun amount in case of unforeseen or increased material cost during the project. This information will be used by the appraiser in determining the value of the house after the project, what is referred to as the 'subject to' or 'after completion' value. Typically, FCB will lend up to 75% of the appraised value or 90% of the hard cost which ever is lower.

The terms of the loan allow for interest-only payments to be made during the rehab period. This period may be from 3 to 12 months depending on the project, and the borrower will make between 3 and 6 draws during this time. After the rehab phrase the loan will start its normal amortization schedule. FCB offers these programs for consumers and investors.

Safe Deposit Box Security!

Get the peace of mind knowing that your valuable belongings and important papers and documents are all together in a safe place.

Sizes range from 3" x 5" to 10" x 10" and prices range from only $30 to $85 a year.

Safe Deposit Boxes are available in our E. Broad Street and Sedalia locations.

Security Pointer-Lottery Winner?

Although we have seen these several times and have made every effort to educate our customers about these, people are always wishing you can get something for nothing. Keep this in mind: if it's too good to be true, it probably is.

Recently, a customer of ours received a letter informing him that he had won the Canadian Lottery and that to claim his winnings, he need only to cash the enclosed check and send a payment back to them to cover "taxes".

Another benefit of banking with a smaller bank is that we know our customers. Our staff, realizing this was out of the ordinary for this customer, asked about the check when the customer came in to make the deposit seeking to follow the letter's instructions and found out it was a scam. This quick thinking by our experienced staff, potentially saved our customer a loss of several thousand dollars. He was lucky. Not everyone is.

If you receive an email or a letter or even a phone call from someone telling you that you have won a lottery or even an inheritance or someone needing help getting money out of a foreign country, be skeptical. Get a phone number and we'll try and help you follow it up to determine if it's real or not.

When asked, the customer admitted that he has never played the Canadian lottery, but thought he had won nonetheless. Remember, you've got to buy the ticket first!!!

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