Welcome Home Program – Opens March 1, 2014

BANKLOCAL: NEWS AND VIEWS
Issue 001
COMPLIMENTS OF:
John Mauldin, Chief Executive Officer
BI-MONTHLY
NEW SLETTER
JANUARY/FEBRUARY 2014
CALLING ALL HOMEBUYERS!
IN THIS ISSUE
Welcome Home Program – Opens March 1, 2014
The Federal Home Loan Bank of Cincinnati
(FHLB) will begin accepting reservations for
their Welcome Home Program on March 1,
2014. Each year the FHLB sets aside a
special allocation of funds to help create
homeownership through their Welcome
Home Program. Welcome Home funds are
available to FHLB member institutions as
grants to assist homebuyers in the
purchase of a primary residence. Eligible
households can receive up to $5,000 that
can be used for either down payment or
reasonable closing costs.
There is no requirement for repayment of
the grant as long as the homeowner
maintains ownership of the property for at
least five years.
For each year the
homeowner maintains ownership, 20% of
the grant will be forgiven. If the property is
sold during the first five years, the
homeowner must repay the “unforgiven”
portion of the grant.
To be eligible, the homebuyers’ income
cannot exceed the limits established for
the county and state in which the property
is located. For example in 2013, an
individual or couple purchasing a home in
Fayette County could not have a gross
annual income that exceeded $53,783. For
a family of 3 or more, the income limit was
$61,851. Income limits for 2014 have not
been set at this time.
In addition,
homebuyers must have established good
credit and be able to qualify for repayment
of the mortgage loan as determined by
standard underwriting guidelines.
As in past years, the demand for the
Welcome Home funds is expected to
exceed the supply. In 2013, all available
funds were allocated in less than 60 days
of the program opening. With that high
demand, it is essential that potential
homebuyers begin the qualification
process early. In order to reserve funds,
homebuyers must have a fully executed
purchase contract, a completed mortgage
loan application with a FHLB Member
Institution and income verification.
Bank of Lexington is a member of the FHLB
and is ready to assist homebuyers in this
process. Don’t let this opportunity pass
you by! Contact one of our experienced
mortgage loan officers today and get on
your path to homeownership.
Resolutions and Solutions
The beginning of a new year is a great time to put into
action some things that can benefit you and your family
for a lifetime. After all, there is no better time than now
to plan your financial future.
SEE Page 2
Q&A with Local Realtors
With the 2014 Spring Home Buying season just around
the corner, we asked some of Lexington’s top Realtors
for advice on important home buyer/seller issues.
SEE Page 6
BANKLOCAL: NEWS AND VIEWS
| Issue 001
Resolutions and
Solutions for the
New Year
by
John Soper
The beginning of a new year is a great time to
put into action some things that can benefit
you and your family for a lifetime. After all,
there is no better time than now to plan your
financial future. Here are some things to
think about and solutions from Bank of
Lexington.
PAY YOURSELF FIRST
Regular, consistent saving contributions go a
long way toward building financial
independence. Payroll deductions for 401-K
contributions are a must, but should your
savings plan go beyond just building a taxdeferred retirement balance? Tax deferred
retirement plans have penalties for
withdrawals prior to age 59 ½, plus any
withdrawals are added to taxable income.
Shouldn’t you consider building an after-tax
account that will fund the things you want or
need to do before retirement? There are two
ways to do this. One, split your direct deposit
so that an amount or percentage goes
directly into your savings account before you
can spend it. Or, setup an automatic transfer
for each payday, regularly sending money
from your checking account to your savings
account. Bank of Lexington has the perfect
combination of free checking accounts and a
great savings account in our PreferredPlus*
Account that is currently paying 0.35% APY
(that might not sound like much but check
around and you’ll find it’s as much as 3 times
the rate at some other banks).
FUND YOUR RETIREMENT AND DIVERSIFY
If you cannot take advantage of an employer
sponsored plan then are you putting aside
enough? Does all of your retirement savings
need to be in the stock market? If any of
these questions hit home, then you might
consider Bank of Lexington’s new “No
Regrets”** certificate of deposit. This 24
month CD pays 0.75% APY but allows you the
one time option of changing the rate should
deposit rates increase without extending the
term and without penalty as long as the
funds remain on deposit with Bank of
Lexington. With the “No Regrets” CD** you
have the one time option to raise your rate
and not miss out on a rising rate
environment. If rates don’t increase—you
2
earn a great rate, if rates
do increase—you won’t
regret the option to earn
a higher rate.
For
example, if 12 months
from your original deposit
our one year rate
exceeded 0.75% APY then
come in and rewrite your
CD into a 12 month term
for the higher rate. Early
withdrawal penalties of
one half of the original
term’s interest applies on
funds withdrawn prior to
maturity.
KNOW WHAT YOU
SPEND
Whether it’s your personal checking account
or your business checking account, tracking
what you spend will allow you to develop a
realistic monthly budget to keep you on track
to meet your savings goals and to eliminate
debt. One tool that helps is QuickBooks.
Bank of Lexington is proud to team up with
Intuit, Inc. to allow customers the ability to
download current Bank of Lexington account
information into QuickBooks software
automatically, eliminating the need to
manually enter transaction data. As a result,
you can save time, improve accuracy, and
better manage your complete financial
picture using the best-selling finance
software. Visit www.bankoflexington.net to
sign up for online banking and get started
today!
OWN YOUR OWN HOME—MORTGAGE FREE
When will you make your last mortgage
payment? At the very least your goal should
be that you last house payment will come out
of your last paycheck. It’s hard to imagine a
successful retirement being saddled with a
mortgage payment. Home ownership has
some great benefits including the mortgage
interest deduction but isn’t it really your goal
to own your home debt free? Whether it’s
your first home or your last, the loan officers
at Bank of Lexington are prepared to help you
prepare to achieve your ultimate goal of a
debt free retirement. If it is your first home,
we will help you understand what you can
afford and how it fits in your complete
financial picture. If it’s your last home, we’ll
help you determine the best plan to burn the
mortgage. At Bank of Lexington our loan
officers don’t work on commission, they work
on relationships.
*Preferred Plus Account Disclosures
*Must open or have a PRIMARY checking account with
direct deposit of payroll or the ACH of mortgage payment
to earn stated APY. The annual percentage yield effective
beginning January 17, 2014. Minimum opening deposit to
open and maintain stated APY is $500. Minimum balance
of $500 during statement cycle ($5 quarterly fee if daily
balance falls below $500). Interest is compounded daily
and credited quarterly. This is a limited time offer. The
yield is a special offer and is only guaranteed through June
30, 2014. After the guaranteed rate period has ended,
rates are subject to change without notice. Fees could
reduce account earnings.
**No Regrets CD Disclosures
**Annual percentage yield effective January 20, 2014.
Minimum opening deposit to open and maintain stated
APY is $5,000. This is a limited time offer. The yield is a
special offer and does not apply to automatically maturing
certificates. Penalty for early withdrawal based on terms
of certificate. Fees could reduce earnings. Rates subject
to change without notice. Insured by FDIC up to maximum
amount allowed by law. One time option to raise the
interest rate without extending the term and without
penalty. Early withdrawal penalties will not be imposed
for a onetime withdrawal, made after 6 days of account
opening, when the funds are deposited into a new BOL CD
for a term equal to the remaining term of the CD.
JOHN SOPER
Senior Vice President
E-mail: jsoper@bankoflexington.net
Phone: 859.219.2913
BANKLOCAL: NEWS AND VIEWS
| Issue 001
3
FEATURED BUILDING PLAN
FOR MORE INFORMATION
Builder Spotlight
Logan Builders, LLC
Logan Builders was founded by John T. Logan Jr. in 2009.
This company is a culmination of John’s vast experience
in building, home remodeling, and drywall work. John
has spent his whole life around the construction industry
beginning with his father, John Logan, Sr.’s company, ABC
Painting and Cleaning which was founded in 1969. John,
Jr. went on to graduate from Bryan Station High School
and then Marshall University with a degree in Business
Administration. Upon his return to Lexington, he joined
forces with his father and grew John Logan and Sons
Drywall into a successful drywall company. John has
continued the drywall business as JLD, Inc. and is
successful with commercial and residential drywall
projects such as the brand new Morning Pointe of
Lexington Senior Living Facilities in 2013.
Logan Builders has transferred this exceptional
Built by Logan Builders in The Home Place, the Senna is a reputation to the residential homes market in Lexington
and the surrounding area. Logan Builders is certified in
2,005 square foot 2-story plan with 4 BR, 2.5 Bath,
Green Build and Energy Star standards and is an active
Formal DR with an unfinished basement.
member of the Home Builder’s Association of Lexington.
Logan Builders has the unique ability to provide the
FAST FACTS
highest quality home possible in any price range. Logan
Builders’ recent projects have included top quality
affordable housing plans in the Equestrian View
Subdivision, Georgetown Street area, and the Rain
Garden subdivision, as well as custom homes in
Summerfield, Saddle Club and Boones Trace Subdivisions.
The Senna Model
81%
of adults surveyed believe buying a home is the best
long-term investment a person can make.
Currently, Logan Builders is highlighting their homes in
The Home Place of Lexington. The Home Place of
Lexington is located in one of Lexington’s most popular
new areas just minutes from the retail and restaurants of
Hamburg, with easy access to Interstates 64 and 75, and
is located near Lexington’s newly planned elementary
and high schools. Logan Builders has multiple floor plan
of homeowners say they are happy with their decision to
options available in this neighborhood with prices
own.
starting around $185,000. The company continues to
offer custom home options and is working on designs in
Tuscany and Summerfield subdivisions.
96%
210 West Third Street
Lexington, KY 40508
Phone: (859) 252-1490
Email: loganbuilders @aol.com
Logan Builders homes are
marketed exclusively by:
Guide Realty
Raquel E. Carter, Realtor
121 Prosperous Place, Suite 1A
Lexington, KY 40509
Phone: (859) 421-8984
Email: Raquel@guide-realty.com
BANKLOCAL: NEWS AND VIEWS
| Issue 001
4
LOCAL BUSINESS SPOTLIGHT
GENO’S TRIVIA
QUESTION: Why is Geno’s Formal Affair spelled with an
“e” rather than an “i”?
ANSWER: Better placement in the Yellow Pages. At the
time Geno’s was started, there was another formal wear
store in Lexington, Gingiss Formal Wear. By using the
“e”, Geno’s appeared first. IT WORKED!
FAST FACTS
75%
of engaged couples in the United States pay for some or
all of their own wedding
175
Average number of guests at wedding in the United
States
FOR MORE INFORMATION
French Quarter Square
2573 Richmond Road.
Lexington, KY 40509
(859) 268-2323
gfa003@gfatux.com
Towne Center
141 Towne Drive
Elizabethtown, KY 42701
(270) 360-1211
gfa004@gfatux.com
Service Center
Showroom
2016 Mercer Road
Lexington, KY 40511
(859) 259-2323
info@gfatux.com
Southland Shopping
Center
380 Southland Drive
Lexington, KY 40503
(859) 276-1461
gfa002@gfatux.com
Business Spotlight
Geno’s Formal Affair
When Gino Guarnieri, President of Geno’s
Formal Affair, graduated from the University
of Kentucky in the early 1970’s, he knew that
his destiny was to be in the clothing business.
Gino descends from a long line of custom
tailors so it was natural to carry on in the
“family business”.
HUMBLE BEGINNINGS
Following graduation, Gino knew he did not
want to be a custom tailor like his father and
definitely did not want to work in a
department store. He saw an opportunity in
Lexington to rent tuxedos for weddings and
proms and approached his father, Guido,
about purchasing some inventory and renting
them out of Guido’s small tailor shop on
North Limestone. Guido reluctantly agreed
but limited Gino to two colors, black and
white.
In the 1970’s, color was in and so Gino
arranged to sub-rent tuxedos from a
wholesaler in Cincinnati. For his first prom
that year, Gino was able to take 100+ orders.
Unfortunately, the wholesaler failed to
deliver the product and Gino had to scramble
to fill the orders with substitute tuxedos from
another supplier at three times the cost of
what he had rented them to his customers.
It was from this experience that Gino realized
that in order to insure great customer
service, he could not rely on third party
suppliers so he began to invest in his own
inventory of formal wear. Additionally, he
relocated his business to the “suburbs” on
Southland Drive.
CONTINUED GROWTH
As a means of expanding his business, Gino
began to build a network of small bridal
shops and men’s clothing stores in which he
could act as the wholesale supplier. This also
gave the shop owner an additional source of
revenue without having to make the capital
expenditure for inventory. In 1982, due to
the increased growth in this segment of the
business, Geno’s purchased a 6,000 square
foot warehouse which housed the inventory,
dry cleaning area and distribution center. By
1990, Geno’s had outgrown their facility and
constructed their current 35,000 square foot
warehouse, showroom and corporate offices
on Mercer Road. Today, the wholesale
division accounts for 60% of gross revenues.
In 2009, Gino identified another market
segment and began to expand into women’s
Prom, Bride’s Maid and Special Occasion
dresses. In five years, this new line has
grown to over 30% of Geno’s retail sales.
Having perfected this model, Geno’s is
looking to expand their retail
presence into other markets outside
of Lexington.
KEY TO SUCCESS
When asked what the secret of
his success is, Gino quickly states
that it is the philosophy of “if we
don’t take care of our customer,
someone else will.” It is more
than a philosophy, it is their
corporate environment.
BANKLOCAL: NEWS AND VIEWS
| Issue 001
5
Pre-Qualified
Vs.
Pre- ppro e What's The Difference?
PRE-QUALIFICATION PROCESS
Getting pre-qualified is the initial step in the
mortgage process, and it is very simple. You
supply the bank or lender with your overall
financial picture, including your debt, income
and assets. After evaluating this information,
a lender can give you an idea of the mortgage
amount for which you qualify. Prequalification can be done over the phone or
on the internet, and there is no cost involved.
Loan pre-qualification does not include an
analysis of your credit report or an in-depth
look at your ability to purchase a home (see
pre-approval).
REASONS WHY YOU SHOULD GET PREQUALIFIED
The initial pre-qualification step allows you to
discuss any goals or needs you may have
regarding your mortgage with your lender. At
this point, a lender can explain your various
mortgage options and recommend the type
that might be best suited to your situation
(i.e. How Much home can you really afford).
NOT A COMMITMENT TO LEND
Because it's a quick procedure, and based
only on the information you provide to the
lender, your pre-qualified amount is not a
sure thing; it's just the amount for which you
might expect to be approved. For this reason,
a pre-qualified buyer doesn't carry the same
weight as a pre-approved buyer who has
been more thoroughly investigated.
PRE-APPROVAL PROCESS
ADVANTAGE OF COMPLETING BOTH –
PRE-QUALIFICATION AND PRE-APPROVAL
Getting pre-approved is the next step, and it
tends to be much more involved. You'll
complete an official mortgage application,
and then supply the lender with the
necessary documentation to perform an
extensive check on your financial background
and current credit rating. (You may not have
found a house yet, so any reference to
"property" on the application will be marked
as “TBD”). From this, the lender can tell you
the specific mortgage amount for which you
are approved. You'll also have a better idea of
the interest rate you will be charged on the
loan and, in some cases; you might be able to
lock-in a specific rate.
Before you start to look for a home you'll
know in advance how much you can afford.
This way, you don't waste time with guessing
or looking at properties that are beyond your
means. Getting pre-approved for a mortgage
also enables you to move quickly when you
find the perfect place. When you make an
offer, it won't be contingent on obtaining
financing, which can save you valuable time.
In a competitive market, this lets the seller
know that your offer is serious - and could
prevent you from losing out to another
potential buyer who already has financing
arranged.
REASONS WHY YOU SHOULD GET PREAPPROVED
With pre-approval, you will receive a
conditional commitment in writing for an
exact loan amount, allowing you to look for a
home at or below that price level. Obviously,
this puts you at an advantage when dealing
with a potential seller, as he or she will know
you're one step closer to obtaining an actual
mortgage.
Once you have found the right house for you,
you'll fill in the appropriate details and your
pre-approval will become a complete
application.
FOR MORE INFORMATION
We want to help you start
the home buying process,
contact us today!
Contact by Phone:
E-mail:
859.219.2917
dbranham@bankoflexington.net
Or Visit our website to complete a
loan application Click Here
BANKLOCAL: NEWS AND VIEWS
Q
A
| Issue 001
6
Ask a Realtor
With the 2014 Spring Home Buying season just around the corner, we asked some of Lexington’s top
Realtors for advice on important home buyer/seller issues. Each issue will feature new questions and
answers from different local realtors.
Question: What should a first-time homebuyer do to prepare for purchasing a home?
Answer: There are several things a first time homebuyer should consider before beginning their home search. Meeting with and
developing a relationship with a qualified financial institution is critical. The financial institution will guide the new homebuyer
through the qualification process. It is very important for the first time homebuyer to have a satisfactory credit score, consistent
work history, and a track history of financial responsibility. The financial institution will be able to provide an understanding of the
needed down payment funds and what the first time homebuyer is qualified for in terms of purchase price and borrowing power
and interest rate. – Bob Compton, Rector-Hayden Realtors
Answer: Talk to a loan officer to be pre-qualified so they know exactly what price range to look in. They also need to understand
closing costs and what home ownership involves i.e. maintenance, insurance, taxes and be prepared for things that could go
wrong. – Mari Ann Huber, Bluegrass Sotheby’s Int Realty
Question: What should property owner do in preparation for listing their home for sale?
Answer: Remove their “collections” and de-clutter the entire house which often means renting a storage unit. Stacking it all in
the basement or garage is not the answer. Go on line and see what their competition looks like. Go room by room and do any
repairs. Then go outside and do any clean up and repairs needed which includes painting where needed and replacing rotted
wood on door frames. Have the HVAC serviced to make sure they do not get a “nasty” surprise/ expensive when the buyer’s
home inspector comes in. Picking an agent that gives them accurate information. – Donna Elder, RE/MAX Creative Realty
Answer: The first step is to de-clutter. It is always a good idea to thoroughly clean. As an agent, I offer staging advice in my initial
listing consultation. This is a good time to address any minor repairs and consider curb appeal. – Lynn East Ransdell, RE/MAX
Creative Realty
Our strength of knowing our community and dealing one-on-one with our clients while
structuring products to meet their needs enables us to better serve our customers and
reach out to new clients. For those of you who are banking with us, we thank you. For
those of you who are seeking a new bank which offers unique as well as traditional
products, we look forward to meeting you. Our board of directors, officers and entire
staff, would like to serve your banking needs…
John Mauldin
Chief Executive Officer
jmauldin@bankoflexington.net
859.219.2901
NMLS #453885
Main Office
761 Corporate Drive Lexington, Kentucky 40503