FAQ

Frequently Asked Questions about Mortgages, Loans, and Loan Application

Already secured a low fixed rate? You’re in good shape. But, if any of the reasons below applies to your current situation, you may want to look into refinancing.

Decrease Monthly Payments
If you can get a fixed rate that is lower than the one you currently have, you may lower your monthly payments.

Get cash from the equity in your home
If you have enough equity you can get cash out by refinancing. You can use the cash for home improvements, college tuition, or any other major expenditure you may have. Switch from an adjustable to a fixed rate. If your ARM is adjusting you want the security of a low fixed rate, or if rates have fallen below your current rate, it may be to your advantage to refinance.

Consolidate Debt
You can refinance your mortgage to pay off debt. If you are carrying balances on high interest credit cards, you may save money each month by refinancing. The interest you pay on credit cards simply goes out the window. By refinancing, you can take advantage of a lower interest rate-and that interest is often tax-deductible. (Consult your tax adviser)

Pay off your mortgage sooner.
If you switch to a shorter term it typically saves thousands of dollars in interest and pays off your home earlier. Your payment may not be much higher than what you are currently paying.

Fixed-Rate Mortgages
Interest rates and monthly payments stay the same for the term of the loan.

Adjustable-Rate Mortgages
Interest rates and monthly payments can go up or down, depending on the market.
Contact your mortgage loan officer to go over the variety of programs available for you. There are several different purchase programs and 2nd mortgage programs.
If you are self-employed call us today or e-mail one of our Loan officers, we may be able to help.

Loan Application Documents

Standard supporting documents
– Personal Information
– Employment / Income
– Name and address of employers for the past two years
– Pay stubs for the past 30 days
– W-2 forms for the past 2 years

If you are self employed
– Complete signed Federal Tax Returns for the past two years
– Year to date Profit and Loss Statement and Balance Sheet
– Business license

Other Income
– If you receive Social Security, a pension, disability or VA benefits you’ll need:
– A copy of your awards letter (or tax returns for the past two years)
– A copy of your most recent checks or bank statements showing deposits

Rental Income
– Copy of the lease agreement for each rental unit

Loan and Mortgage Rates

Loan and Mortgage Rates are market-driven, and can change on a day-to-day basis based on the national index. We invite you to contact one of our mortgage and loan specialists for current rate information.

Closing Costs and Out-of-Pocket Costs

At Cornerstone First Financial, we use the same title company for all of our deals that we’ve been using for 10+ years. Because we give them all of our business, they pass onto us a discount which we then pass on to our customers. This allows us to offer very aggressive closing costs that are among the lowest in the industry.

We can save customers additional money on refinance loans by re-issuing their title insurance. On VA Loans, there is no money down. On FHA Loans, there is a 3.5% down payment, and on conforming loans, there is a 5% down payment.

Broker Fees

Updated information coming!

Need help with Mortgage Terms? View our glossary of frequently used industry mortgage terms.