What you can expect while your loan is being processed:
Thank you for choosing Cornerstone Home Loans for your mortgage needs! We have created this page in an effort to provide our customers with an overview of what you can expect during the processing of your mortgage application.

Step 1. Pre-Qualification.
Get pre-qualified! The pre-qualification process helps you better understand your mortgage financing options as well as what you can expect for monthly payments and determine a general price range of homes you should be shopping for. During the pre-qualification process your loan officer will ask you for income and asset information and will usually obtain a credit report. If you are purchasing a home, your loan officer can issue a pre-approval letter to your real estate broker which can greatly strengthen an offer and increase the likelihood of the offer being accepted. A pre-approval letter informs the seller of the property that you are a serious and qualified homebuyer.

Step 2. Application.
Applying for a home mortgage doesn’t have to be a daunting process. When you reach the application stage you have likely already been pre-qualified for a loan. At this point, you and your loan officer will likely have discussed your specific needs and selected a mortgage program that bests fits your needs. You will be provided with a Good Faith Estimate which provides you with estimated closing costs, prepaids/escrow accounts, and your estimated monthly payment. Your loan officer will indicate which documents will likely be necessary for underwriting and final loan approval. Getting these documents in to your loan officer promptly will ensure a smooth mortgage process. At the time of application, your loan officer will provide you with a “Borrower’s Checklist” outlining the items needed to process your loan. You can fax, scan/email, or mail in the requested items to your loan officer or processor.

Appraisal Deposit: Once a property has been selected, Cornerstone will require an appraisal deposit of $400.00 be collected. We collect this deposit upfront as we order and pay for an appraisal regardless if your loan closes or not. This is NOT an application fee. This deposit will be credited back to you at closing on the settlement/closing statement. An appraisal cannot be ordered until your deposit has been paid.

Homeowner’s Insurance Requirement: Whether you are refinancing your current home or purchasing a home, an updated homeowner’s insurance binder (also called “hazard” insurance) will be required. Underwriting will require the insurance binder at least 1 week prior to closing to ensure proper coverage is in place. We recommend that you begin shopping for and obtaining homeowner’s insurance early in the process to avoid delays to closing. Please have your insurer fax the binder to 207-510-1901 to the attention of your loan officer or loan processor. The coverage amount should equal the loan amount being borrowed or if less, include a clause for guaranteed replacement cost. The binder should also clearly state the annual premium, coverage period, and list Cornerstone Home Loans, LLC as the mortgagee (loss payee) as listed below:

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

Step 3. Processing and Underwriting.
Once you have completed your application, executed all disclosures, and provided the necessary documents requested by your loan officer, your file will be assigned to a loan processor. The processor will finalize your file and submit it to underwriting for final loan approval. Your processor is identified on the “Borrower’s Checklist” and will act as a liaison on your behalf. Upon final underwriting loan approval, your processor will contact you to collect any missing items or additional items required by underwriting and issue final loan commitment to you and/or your real estate broker. Your processor should be able to help you with most of your questions during this stage in the process. However, interest rate and/or program selection questions should be directed to your loan officer as processors do not have access to this information.

Step 4. Closing.
Once your file has been fully cleared by underwriting, your closing date can be scheduled. Your processor will coordinate the closing date/time and will confirm desired date/time with the title company or law firm. You will need to bring valid photo identification with you to your closing (for each borrower). Refinance closings generally take 30-45 minutes while purchase transaction closings generally take 45-60 minutes.

Title Company or Law Firm Contact: During the processing of your loan we will submit a title search request on your behalf. You will receive a questionnaire from the title company or law firm that should be promptly completed and returned to ensure a speedy closing and avoid delays. Please direct any questions you have surrounding the questionnaire directly to the title company or law firm.

How much will I need for closing?: If funds are needed from you for your closing, you will be contacted by the title company or law firm with the exact amount needed. Because the title company has to verify taxes, insurance, and other time sensitive information, the final figure needed is generally made available 24-48 hours prior to closing. The funds must be made payable to the title company or law firm and must be paid via certified funds (i.e., official bank check or money order).

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