Loan Information | Financing Tips

Loan Information

Construction Loan Special

Q. What is the special?

A. Construction loans in excess of $100,000 will be interest free during construction or the expiration of six months whichever occurs first.

Q. How do I get involved?

A. By completing a loan application at either the Mount Carmel or Numidia locations.

Q. Will I qualify?

A. This offer extends to prospective borrowers who have established excellent credit histories and are building with an established builder. Your credit rating and other standard underwriting practices will determine if you qualify. As soon as you complete your formal application, we will process it and notify you normally in 48 hours.

Q. Will the 'interest free during construction" benefit to me be offset by other bank fees? Absolutely not

A. The only fees you pay to the Bank are a one (1%) percent loan construction fee and a document preparation fee of $500.00. No other fees are payable to the bank. You will be required to pay to third party providers for an as-built appraisal, title fees, construction inspection, credit report, flood certification and filing fees.

Q. Service?

A. UNB prides itself in service before, during and after closing. We don't sell our loans. You will make your payments to us. You can always call us to talk about any concerns.

Q. Who do I contact?

A. We would appreciate if you would call in advance to make an appointment to complete the required application. Simply call Mount Carmel (570-339-1040) or Numidia (570-799-0176) and say your want to schedule an appointment. Our friendly staff will assist you. Our loan officers will also be available to answer any preliminary questions you may have prior to coming to file an application. You can also contact us on the World Wide Web @ www.unbmountcarmel.com

This offer is subject to change without notice and maybe withdrawn at the discretion of the lender.

Financing Tips

Most financial institutions base lending on the three C´s

• Credit ­ good credit ­ paying your bills on time ­ your credit score is important
• Capital ­ have the cash for a down payment and closing costs
• Capacity ­ have the earning capacity to handle the monthly payment along with your other obligations

Know how much you can afford

• Most financial institutions use a ratio of 28% of gross monthly income for your housing cost
• Housing cost includes the monthly amount to amortize the amount you finance plus real estate taxes, fire insurance and in some cases private mortgage insurance
• Private mortgage insurance is normally used when a borrower has less than a 20% down payment
• Another ratio is for total debts which is a range of 36%-38% of your gross monthly income
• Total debts would include monthly housing cost plus other items such as car payments, long term school loans, credit card balances that are not paid off monthly and any other fixed monthly payment
• Normally any installment type debts that are paid off within 10 months are not included

Examples of what you can afford ­ Assume $60,000 annual household income

• Your monthly gross income is $5,000
• 28% of this amount is $1,400
• 38% of this amount is $1,900
• Lets say you have $900 in other fixed monthly obligations then you only have $1,000 available for monthly housing cost
• In some situations if you have excellent credit these limits can be higher
• Whatever the numbers are you must feel comfortable with your monthly housing cost

How much can I finance?

• We have programs available today that allow you to finance up to 95% of the sale price.
• Financial institutions finance on the sales price or appraised value of the home, whichever is less
• The less you put down the higher the monthly cost ­ this is where private mortgage insurance is applied

What kind of information should be available when I apply for a home mortgage

• The attached list will give you a guide
• The important things are:
• One month of pay stubs showing YTD earnings.
• Last 2 years W2´s
• At least 2 recent bank statements to evidence cash on hand for closing
• Know who you owe and the monthly payments
• Agreement of Sale for the property you are buying
• If refinancing please provide a copy of your current deed
• We also require a copy of your property tax information and your current insurance information.