"They kept asking weird questions about zoning and usage, and honestly, it felt like they were just looking for reasons to say no."
Yeah, big banks tend to get super rigid with their checklists. Had a buddy who tried refinancing a property with a small guesthouse out back, and the bank acted like he'd built a UFO landing pad or something. Credit unions and smaller lenders usually have more flexibility—they actually look at your situation instead of just plugging numbers into a spreadsheet. Rates might not always be amazing, but sometimes sanity beats saving a few bucks.
Went through something similar recently. Had a mixed-use property—small retail space downstairs, apartment upstairs—and the big banks just couldn't wrap their heads around it. Kept circling back to zoning and usage like it was some unsolvable mystery. Ended up going with a local lender who actually understood the neighborhood and didn't freak out about minor quirks. Slightly higher rate, but way less headache...worth it for me.
I get why going local worked out for you, but honestly, the big banks aren't always as clueless as people make them out to be. Yeah, they can be frustratingly rigid with their rules and zoning obsession, but sometimes there's a good reason behind it. A buddy of mine had a similar setup—small shop downstairs, apartment above—and he went with a major bank after jumping through hoops. Took forever, sure, but he ended up locking in a lower rate and better terms overall.
Local lenders definitely have their perks (less hassle upfront), but the higher rates can add up over time. Guess it depends on how much patience you've got and how long you're planning to hold onto the property. Personally, I'd rather deal with a headache now if it means saving thousands over the life of the loan...but hey, everyone's situation is different.
Yeah, big banks aren't always the villains people make them out to be. Had a similar mixed-use property myself—commercial below, residential up top—and after some initial frustration, the major bank actually came through with better terms. Took months though... patience definitely required.
Interesting perspective, and good to hear it eventually worked out for you. I've found big banks can surprise you sometimes—especially if your project doesn't neatly fit their usual criteria. But honestly, the waiting game can be brutal. Did you find that having a solid relationship with someone at the bank helped smooth things over, or was it purely about ticking their boxes? I've noticed personal connections sometimes make a bigger difference than we'd expect...
