Frequently Asked Questions

Loan pre-approval can be given in a matter of minutes either over the phone or in person. Your loan officer will walk you through the pre-approval process by asking you information on your income, assets, credit and what your goals are in buying a home. Based on this information you will be given a pre-approval that will allow you to place an offer on a new home.

• Last two years W2's Statements
• Last two years Tax returns if Self Employed or Commission
• Most recent month of pay stubs
• Social Security Awards Letter (if applicable)
• Pension Awards Letter (if applicable)
• 2 months bank statements (PDF eStatements)
• Divorce decree (if applicable)
• Rental Payment History (if applicable)
• Social Security Card
• Drivers License or other identification
• ** Additional information may be required depending on program.

Working with Riverbank Finance LLC you may be able to purchase a home with no down payment mortgage. Other available mortgage programs will require as little as a 3.5% down payment for an FHA Loan or 3% down for a Conventional Loan.

The industry average is between 45 and 50 days to close a loan. The mortgage process with Riverbank Finance typically takes around 30 days for most loans, however times may vary based on loan programs. We recommend speaking with your loan officer to establish an estimated timeline for your loan closing. If you are in a time crunch be sure to speak with your loan officer about options to close your loan quickly! Our personalized loan may allow options to have a quick closing and save your purchase agreement from expiration.

In most cases the property is the collateral for the loan, however, in some cases we do not need the appraisal when we can streamline the process for you. Our loan options to refinance such as an FHA Streamline Mortgage or the Home Affordable Refinance Program may allow you to refinance without an appraisal.

There may be options available! For example, if your home is worth $100,000 but you owe $150,000 you may still qualify. Through programs like the HARP refinance you may be able to lower your rate and term regardless of your home's value. Ask your loan officer what options are available if you are under water on your home loan.

This is a program put in place by President Obama. The Making Home Affordable program offers two different potential solutions. 1. Refinancing mortgage loans, through the home affordable refinance program (HARP) 2. Modifying your current mortgage to make it more affordable for your family to stay in the home. Read more about the HARP Mortgage program (now ended).

Credit score requirements vary by loan program. Conventional loans typically require a minimum of 620, while FHA loans can allow scores as low as 580, and sometimes lower with a larger down payment. VA and USDA loans have their own guidelines as well. A higher credit score generally helps you qualify for a lower interest rate, but we work with borrowers across a wide range of credit profiles, including options for buying a home with bad credit.

Pre-qualification is a quick, informal estimate of what you may be able to borrow based on information you provide about your income, debts, and assets. Pre-approval is a more thorough process where your loan officer verifies your income, assets, and credit, resulting in a conditional commitment for a specific loan amount. Sellers and real estate agents take a pre-approval much more seriously than a pre-qualification when you are ready to make an offer.

Your debt-to-income ratio compares your total monthly debt payments to your gross monthly income. Lenders use it to determine how much house you can afford and whether you qualify for a given loan program. Most programs allow a DTI up to around 43-50%, though this can vary depending on the loan type, credit score, and other compensating factors. Your loan officer can review your specific numbers and let you know where you stand.

A fixed-rate mortgage keeps the same interest rate and principal and interest payment for the entire life of the loan, making it easier to budget long term. An adjustable-rate mortgage (ARM) typically starts with a lower introductory rate for a set period, then adjusts periodically based on market conditions. ARMs can be a good fit if you plan to sell or refinance before the adjustment period begins.

Closing costs are the fees associated with finalizing your mortgage, including items like the appraisal, title insurance, recording fees, and lender fees. They typically run between 2% and 5% of the loan amount. Depending on the loan program and the deal you negotiate, some or all of these costs may be covered by seller concessions, lender credits, or rolled into the loan. Ask your loan officer for a Loan Estimate early on so there are no surprises at closing.

Mortgage points, also called discount points, let you pay money upfront at closing in exchange for a lower interest rate over the life of the loan. One point typically costs 1% of the loan amount. Whether paying points makes sense depends on how long you plan to keep the loan and how quickly the upfront cost is recouped through lower monthly payments. Your loan officer can run the numbers to help you decide.

If your down payment is less than 20% on a conventional loan, you will typically be required to carry private mortgage insurance until you build enough equity. FHA loans have a similar requirement called mortgage insurance premium (MIP). Some programs, such as VA loans and certain no down payment mortgage options, do not require monthly mortgage insurance at all.

An escrow account is set up by your lender to collect a portion of your property taxes and homeowners insurance each month as part of your mortgage payment, then pay those bills on your behalf when they are due. Most loan programs require an escrow account, especially when your down payment is below 20%, though some borrowers may have the option to waive it depending on the loan type and equity position.

Refinancing can make sense if it lowers your interest rate, reduces your monthly payment, shortens your loan term, lets you drop mortgage insurance, or allows you to convert equity into cash through a cash-out refinance. A good rule of thumb is to compare your current rate and remaining term to what is currently available, factor in closing costs, and calculate your break-even point. Your loan officer can run a free refinance analysis to see if it makes financial sense for your situation.

Yes. Self-employed borrowers can qualify using standard programs by documenting income with two years of tax returns, or through specialized programs like bank statement loans and DSCR loans for investment properties, which can qualify based on cash flow rather than traditional income documentation. Ask your loan officer which option best fits your business structure.

A rate lock guarantees your interest rate for a set period of time, typically 30 to 60 days, protecting you from market fluctuations while your loan is processed. Many borrowers lock their rate once they are under contract on a home, though your loan officer can advise on timing based on current market conditions and how far out your closing date is.