Cornerstone Home Loans - Help and Questions

Q: How do I know which mortgage program is best for my needs?
A: Our loan officers are experts at reviewing loan scenarios and finding a loan program that suits your specific needs. We take a number are factors into consideration such as, available down payment, income, employment history, credit history, savings history, type of home being purchased, and your long term plans with the property. With this information we can design specific mortgage programs and present you with the best options.
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Q: What is the difference between fixed rate and adjustable rate loans?
A: A fixed rate mortgage is a loan where the principal and interest payment remain the same during the life of the loan. An adjustable rate mortgage (ARM) is a loan where payments are fixed for a certain period of time and then can adjust periodically (up or down) as the interest rate changes. Changes in interest rate occur when the pre-selected index tied to your loan changes. Adjustable rate mortgages typically begin with a lower start rate than fixed rate mortgages. Adjustable rate mortgages have a max rate feature which will limit how high (or low) the interest rate can adjust.
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Q: What is mortgage insurance? (also known as PMI)
A: Mortgage Insurance is typically required on loans with a loan-to-value of greater than 80% and is designed to protect the lender against loss by default in the early stages of loan repayment. Cornerstone offers programs with and without mortgage insurance. Each borrower’s needs differ greatly and your loan officer will be able to help you determine which option is best for you if you are planning to put less than 20% down.
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Q: How do I determine what loan amount I can afford?
A: There are literally hundreds of mortgage programs available at Cornerstone Home Loans that features different guidelines for how much an individual borrower might qualify for. Our loan officers can help you determine how much of a loan amount your financial situation will allow and what price range you will want to look at if you’re shopping for a new home.
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Q: How do I get pre-qualified or apply for a mortgage loan?
A: If you’re in the beginning stages of home shopping, you will want to get pre-qualified. Prequalification includes a review of your income, employment, credit, and savings history. Prequalification will determine what type of home and mortgage you can afford. To get pre-qualified, you can contact one of our loan officers or complete our prequalification form online.

If you’re ready to submit a full application you can apply by contacting a loan officer (click here to contact a loan officer) or downloading, completing, and mailing your application package (click here to download application) or completing your application online through our secure server (click here to apply online).
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Q: What documents will I need to provide during the loan application process?
A: Documentation requirements will vary per borrower depending on type of loan applied for and your specific financial situation. The following list provides a general idea of type of documents that may be requested for standard loan programs:

Q: How does the loan process work from start to finish?
A: Upon receipt of your completed loan application package and appraisal deposit, borrowers can generally expect about 2-3 weeks for your loan to be processed, underwritten and cleared for closing. During this time, appraisal and title requests are made and completed. A speedy closing also requires cooperation from the borrower(s) to meet any conditions that have been requested by underwriting in a timely manner. The time given is an estimate only as some loans will require less time to close while others will require more. This timeframe is controlled by the desired loan program, the ability to provide proper documentation and the subject property appraising successfully.
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Q: How and when can I lock-in my interest rate?
A: To lock in an interest rate, it will be necessary for you to complete the application process with Cornerstone Home Loans. You must also have the subject property formally selected (under contract) to lock in your interest rate. Interest rates are tied to properties, not borrowers, so you cannot lock in during prequalification or pre-approval. Upon meeting application and formal property selection you can lock in at just about any time during the process. Some people elect to lock a rate at time of application while others elect to lock in just prior to closing. In general, rate lock periods are 15, 30, 45, and 60 days but other options may exist. We do require that your loan be locked at least 48 hours prior to closing to allow the closing agent to prepare closing documents accordingly. Contact your loan officer to lock in your interest rate.
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Q: How do I determine if it’s the right time to refinance my existing mortgage?
A: Pin-pointing the exact time to refinance might require some physic ability as no one can predict future interest rates. When deciding whether you should refinance or not, you should consider how much money you will save on a monthly basis and compare that with the costs associated with refinancing. Other factors besides interest rate should be considered. Each situation will be different and you should discuss your available options with your loan officer. For example, if your debt load is high and you’re having difficulty making minimum payments, a refinance to free up cash-flow will be important to you. On the other hand, if you’re planning on selling your house next summer it may not make financial sense to refinance as it will actually cost you more in associated costs despite the fact your monthly payment may be lowered substantially. Contact your loan officer to see is refinancing your mortgage may be right for you.
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Q: What is your "Mortgagee Clause" (loss payee clause) needed for my homeowner’s insurance?
A: Whether you are refinancing or purchasing a home, underwriting will require an updated homeowner’s insurance binder (also called “Hazard Binder”) at least one week prior to closing. The coverage amount should be at least equal to the loan amount (if less, coverage should include replacement cost), policy period, annual premium, and list Cornerstone Home Loans, LLC as the mortgagee (or loss payee) with the following mortgagee clause:

Cornerstone Home Loans, LLC
ISAOA ATIMA
153 US Route One, Suite 9
Scarborough, Maine 04074

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Q: How will I know how much money to bring to closing (if funds are required)?
A: If funds are required from you for closing, you will be contacted by the title company (closing agent) with the exact amount needed. Because the closing agent has to verify taxes, insurance, and other time sensitive information the final figure needed is generally made available 24-48 prior to closing. The funds must be made payable to the title company and must be paid via certified funds (i.e., official bank check or money order).
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Copyright 2008 Cornerstone Home Loans, LLC.
153 US Route One, Suite 9, Scarborough, ME 04074
Equal Housing Lender - FHA Approved Lender
Licensed by the New Hampshire Banking Department
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