A: A construction to permanent loan is a residential mortgage loan that combines the construction phase with a fully amortized mortgage so that you only have to attend one closing.
A: A consturction to permanent loan has a 12 month interest only period during the construction phase followed by a fully amortized 30 year mortgage loan.
A: Needham Bank will loan up to 80% of the acquisition cost plus 100% of the construction "hard costs". Needham Bank does not usually fund for plans, engineering and soft costs such as permits.
A: You may choose any one of our residential mortgage products, fixed or adjustable.
A: There are five factors that impact consumer credit scores. They are listed here in order of importance:
- Payment History has a 35% impact. Paying debt on time and in full has a positive impact, and late payments, judgements and charge-offs have a negative impact.
- Outstanding Credit Balances have a 30% impact. Debt ratio of outstanding balance to available credit is important. Keeping that below 50% is wise and below 30% even wiser. It is never a good idea to close an account; the debt ratio will go up and the number of seasoned lines will decrease. Pay outstanding debt down as close to zero as possible and evenly redistribute the remaining balance among open lines. The increased interest incurred by moving a balance from a 0% card to a 23% card will be minimal relative to what the increased mortgage debt might be with a low credit score. Hitting the maximums of aviilable credit can be very negative. It may be worth calling and asking the credit company to increase your available credit to lower the debt ratio, provided they can do so without a hard credit history.
- Credit History has a 15% impact. The length of time a particular credit line has been opened is important. A seasoned borrower is stronger.
- Type of Credit has a 10% impact. A mix of auto loans, credit cards and mortgages is positive, rather than a concentration in credit cards only.
- Inquiries have a 10% impact. Hard inquiries for credit negatively impact the score. Auto and mortgage inquiries receive special treatment and 20 inquiries can be made in a 14-day period for auto or mortgage and will be treated as only 1 inquiry. The maximum number of inquiries that will reduce the score is 10. Any inquiries beyond that (11+) in a six-month period will have no further impact on the borrower. Each hard inquiry can cost 2-50 points on a credit score.
A: A pre-qualification is an estimate given by a lender stating that you "should" be able to buy a home up to a certain amount. This is an estimate only and may help you in deciding to make an offer on a home. Getting pre-qualified is an important step to being prepared to buy a home; it's FREE and takes only a few minutes.
A: Please complete a standard residential mortgage application.
A: Please submit two recent tax returns; two recent pay stubs; two years w-2's; three months bank statement on all your accounts. In addition, we need a full set of plans, specifications and a signed contract with your builder.
A: You may download an application from our website by clicking here.
Call one of our Loan Officers for an appointment at (781) 444-2100.
A: We offer commercial real estate loans, speculative construction loans, commercial term loans for equipment, working capital lines of credit, and letters of credit.
A: Please call one of our commercial loan officers at (781) 444-2100.
A: Builder financing varies depending on the project and market conditions. Needham Bank will usually finance a percentage of the acquisition and 100% of the hard construction costs.
A: Financing for construction loans is usually interest only for an 18 month period at a rate determined by market conditions.
A: The Loan to Value may change depending on the project. Call for information on our current requirements.
A: Needham Bank offers fixed rate and adjustable rate mortgage loans, home equity lines of credit, and fixed rate home equity loans.
A: A Buyer's Broker is a Realtor that puts your interests first. They usually share the broker fee with the seller's broker, or are paid by you.
A: Real Estate brokers usually have access to multiple listing services and can be very helpful finding you the home of your dreams, but the choice is yours.
A: Needham Bank determines your housing payment including principal, interest, and real estate taxes at approximately 30% of your monthly gross income. Your housing payment and all other outstanding debt (auto loans, school loans, credit cards) should not be more than 40% of your gross monthly income.
A: Depending on your credit history, down payment, and the loan program selected, we may be able to approve your mortgage request in less than 24 hours. However, 5 to 7 business days is typical.
A: The APR (annual percentage rate) reflects the cost of your mortgage loan on a yearly rate. It also included the costs to obtain the mortgage, such as discounted fees and points paid. The interest rate is the actual rate you pay on your note. The APR is used as a guide for comparison shopping with other lenders to determine fees associated with the loan.
A: You should bring any income and asset information along with any other information you feel is pertinent such as a Purchase and Sale agreement, if applicable. Additional documentation may be requested depending on your financing situation.
A: You may either contact your loan officer directly or the Residential Lending Department at (781) 444-2100.
A: Yes, but some of the fees are reduced for refinancing with us.
A: For refinance transactions you may include your closing costs as part of the loan amount as long as the loan to value ratio meets bank policy. Although, on purchase transactions you may not finance your closing costs.
A: No. The bank will retain an attorney for all real estate transactions. If you are purchasing a property it is recommended you hire an attorney on your behalf to review the purchase and sale contract.
A: No. We require all parties to be present at closing.
A: Yes. Title insurance (Lender's Coverage) is required on all transactions. As the property owner you have the option to secure Owners Coverage. Please consult with your attorney for advice on this option.
A: PMI is Private Mortgage Insurance written by a private company that protects the lender should the borrower default on the mortgage. Borrowers are required to pay the premium as part of their monthly mortgage payment. If you make a down payment less than 20%, even if you have good credit history, PMI Insurance is required for most loans. Currently Needham Bank does not require PMI.
A: The bank requires a one year pre-paid receipt of homeowner's insurance for at least the amount of the mortgage at closing.
A: Yes, you need to send your initial Real Estate Tax bill if we escrow your taxes to ensure proper payment. After the first payment, we will pay your taxes electronically with our Real Estate Tax Service provider. You may retain all subsequent bills for your personal records.
A: An escrow account is typically established at closing. This account is held by the bank for the future payments of recurring items relating to the mortgaged property, such as real estate taxes and flood insurance.
A: The bank will collect escrow for real estate taxes for all loans except condominiums. The bank does not escrow for homeowner's insurance. You are responsible for maintaining homeowners insurance on your property at all times as part of your mortgage contract. The bank will escrow for the payment of flood insurance if required.
A: Based on a principal reduction of at least $50,000 we will allow a recalculation and reduction of the mortgage payment. The request must be made in writing to the bank and may require a fee to be paid.
A: We order the appraisal upon approval of your mortgage application. The estimated turn around time is typically 5-7 business days.
A: The bank will provide a copy of the Appraisal at closing or you may request a copy in writing before closing.
A: Year-end statements (IRS Form 1099) are mailed out by the end of January. This statement includes interest and real estate taxes paid on your mortgage loan for the previous year.