Loan Tips

#1. Don't be fooled by the Rate quote only.

Most conventional mortgage lenders offer the same basic loan products at very similar prices. At Riverside Mortgage, we can can show you how even the same loan rate quote from one lender to the next can still be different. We show you all the cards. Don't be fooled by the interest rate quote alone.

#2. Getting Pre-approved vs. Pre-qualified.

During pre-approval, we do all the work of a full approval, except for the appraisal and title work. You then become like a CASH BUYER and have more negotiating clout with the Seller. PRE-QUALIFICATION involves taking a loan application, after which we get an instant credit report and let you know if you will likely be APPROVED for the loan you are seeking. For refinances, this can usually be done within hours.

#3. Get a Written Good-Faith Estimate.

When applying for a loan, we will give you a Good-Faith Estimate that will show you all of the costs of your loan, including the rate. You should get this from anyone else who you might seek to compare the costs. The cost of a mortgage, however, cannot be your only criterion. There is no substitute for interviewing your prospective lender. Are they a bank or just a broker? Do they fund the loan for you, or do they rely on others to fund your closing? This can be a very important distinction.

#4. Locking in your Rate.

When a mortgage company tells you they have locked in your rate, get a written statement which details the interest rate, the length of the rate lock, and the details about the program.

#5. Mortgage Loan Interest Tax Deduction.

Always check with your accountant to make sure that the interest on your home-equity or primary mortgage loan is tax deductable. Restrictions may apply depending on the amount of your loan, or if you fall into the Alternative Minimum Tax trap.