Frequently Asked Questions



How much of a down payment will I need? The minimum down payment required depends on the program you select. We offer loans with various down payment options, including "no down payment" and "low down payment" programs.
When should I start the mortgage process and how do I know what I can afford? The best time to look for a mortgage is before you look for a house. This enables you to determine the amount of money you can borrow and how much house you can afford. The calculators on our site make it easy for you to determine how much you can afford and what your monthly payments may be.
Why do I need private mortgage insurance (PMI)? Private mortgage insurance (PMI) is an actual insurance policy that the lender takes out to protect themselves if the borrower defaults on the loan. This protects the lender and at the same time, enables buyers with minimal down payment the opportunity to purchase a home.
Who can tell me what my property taxes will be? The seller and/or your realtor should be able to provide you with the current property taxes for the property. The best source is the treasurer's office serving the community. Property taxes are reassessed from time to time so this amount may change.
I found a great house but I don't have much money for a down payment. What are my options? There are a variety of programs that require a minimal down payment and we even offer a program that requires no money down. Call one of our loan professionals for assistance today at 317-566-8150.
What happens if my loan does not close before the lock expiration date? When you lock-in your interest rate, you are guaranteed to receive that interest rate as long as you close your loan by the specified expiration date. If your loan closes after the specified expiration date, you are no longer guaranteed your locked-in interest rate. Instead, you will receive the higher of the current market rate or your locked-in rate.
What documents do I need to complete my loan application? Depending on the loan program you are applying for you may be asked to provide a variety of documents. Documents may include but are not limited to: a fully executed agreement of sale for the property being purchased, two months bank statements for all accounts, a HUD1 settlement statement on the property you are selling, copy of your recent pay stub, previous W2s, divorce decree, copy of a rental lease, homeowner's insurance policy, flood insurance policy, and any other documents that may be required to approve your loan.
What does a mortgage lender consider when reviewing a loan application? There are three categories of information we look at when reviewing a loan application. The applicant's personal information, the subject property information and the mortgage program information. Personal Information: We will look at your income, assets, debts and credit history to help determine your ability to repay the loan. Property Information: An appraiser will compare your home to other similar homes in your area to determine that the loan amount being requested is acceptable to our investors. Mortgage Information: We offer a wide variety of mortgage programs to help you with your home financing. Our programs vary based on factors such as down payment required, repayment terms and length, points, and interest rates. We look at the program you selected as a preferred scenario and verify that you meet all the program criteria.
What is a VA loan and who can qualify? The Veterans Administration (VA) created a loan program to help military veterans purchase homes. VA loans require no down payment. Veterans, current military personnel and spouses of veterans who died of service-related injuries may apply for VA loans. Certification of eligibility is required.
I'm self-employed. Will it be harder for me to obtain financing? Not necessarily! Although your situation may require additional documentation, our loan professionals are fully trained to handle such needs. You can generally qualify for the same loan programs as an applicant who is not self employed.
Can you finance my vacation property? RiverWood Financial Group can handle financing of a second home. We have a wide variety of programs available, and it is often just as easy to finance as your primary residence.
Can RiverWood Financial Group finance rental properties? Yes we can! RiverWood Financial Group has assisted many investors with their first rental home purchase, or the purchase of multiple properties. RiverWood Financial Group can finance properties with one to four units.
What are points? One point is one percent of the loan amount (for example, on a $100,000 loan, 1 point = $1,000).
Are discount points tax deductible? We recommend that you contact your tax preparer or the IRS to obtain a qualified opinion on the deductibility of points.
Can I change the loan amount or program after I've applied for a loan? Yes, as long as you meet the criteria for the new loan amount or new program you've selected. Your loan consultant can help you determine if you meet the requirements.
What is a Good Faith Estimate? The Good Faith Estimate (GFE) discloses estimated costs associated with your mortgage transaction. The GFE, by Federal law, estimates the lender's charges along with the local closing agent's charges and fees. The GFE also includes estimated amounts for real estate and property taxes and homeowner's insurance.
What is a Truth in Lending Statement? The Truth in Lending statement provides detailed information about the interest charges and finance charges that you will incur. It defines the cost of your loan expressed as the APR, the amount of interest you'll pay in dollars, and the total of your payments if you make the minimum payment required over the life of the loan.
Why is the Annual Percentage Rate (APR) different from the interest rate? The annual percentage rate is a rate that reflects the total cost of your mortgage loan expressed in terms of an annual interest rate. The APR reflects factors including the interest rate on your mortgage loan, the term of the loan, and the other applicable costs of financing such as points, fees and certain closing costs. Your monthly payment is calculated based on the mortgage note rate, not the APR. The APR will be higher than your interest rate, especially if you are paying any points.


Other Questions? Call 1-317-566-8150 or email mmiller@riverwoodfg.com