Buy now, or wait until the dust settles? The fallout from the sub-prime mortgage crisis has many potential homebuyers wondering how to proceed. The reality is that many New Hampshire financial institutions are continuing to lend money to qualified borrowers. That’s good news for anyone looking to purchase a home right now.

According to a press release issued by the New Hampshire Bankers Association, “sub-prime mortgages represent only about 13 percent of all mortgages in New Hampshire.” The same report asserts that New Hampshire banks in particular have had minimal involvement in the sub-prime market. In the July 2007 Senior Loan Officer Opinion Survey on Bank Lending Practices, published on the Federal Reserve’s website, only 14 percent of respondents reported that their institutions had tightened lending standards for prime mortgage loans. Less than half reported tightening standards for non-traditional loans. The numbers suggest that consumers would do well to turn to traditional depository institutions -- banks or credit unions -- for financing.

For St. Mary’s Bank, a New Hampshire-based credit union, it has been business as usual despite market conditions. “Certainly, the industry has been impacted. But a lot of people are being led to believe they can’t get financing today,” says Barbara Cunningham, vice president of lending at St. Mary’s Bank. “St. Mary’s Bank is proof that that’s just not true. We’re still helping individuals and families get into their first homes, finance business deals, and obtain the credit they need. Many financial institutions are doing the same.” Indeed, the New Hampshire Housing Authority ranked St. Mary’s Bank second in the month of June for volume among the forty-nine lenders who serve first-time home buyers in New Hampshire through New Hampshire Housing.

Credit unions in general are a good choice for borrowers right now. They are not-for-profit, member-owned financial institutions, which insures they have consumers’ best interests in mind. More and more people are realizing this means better service, choices, and affordability. Credit union share and loan growth exceeded 6 percent in the second quarter, according to an article published on creditunions.com by Callahan & Associates, a national credit union research and consulting firm.

St. Mary’s Bank has achieved success during these challenging times by its reliance on fundamental lending practices and embracing the credit union philosophy of putting members and the community first.

“We take responsibility for matching the buyer, the property, and the financing package, so it all works together,” says Cunningham. “Our goal is to make sure borrowers understand the terms of the loans they are taking out and how a change in job status or interest rate might affect them.” While the credit union does offer more unconventional products, such as jumbo and no documentation loans, the same rules apply. “We’re flexible, but reasonably so,” says Cunningham.

Cunningham offers some advice for choosing a lender today: “Get referrals from friends, family and colleagues. Trust your instincts and don’t be afraid to walk away. If it sounds too good to be true, it is. If you’re not getting questions answered, that’s a red flag. Above all, get everything in writing.”