Mortgage FAQ · Straight answers
Mortgage FAQ: Straight Answers from Daniel Molinari
Answers to the questions people ask Daniel most about mortgages, home loans, pre-approval, refinancing and commercial real estate lending, in plain English.
Your secure application is with Cornerstone First Mortgage, LLC (NMLS #173855). Starting an application is not a loan approval.
General mortgage questions
Mortgage questions people ask Daniel.
Don't see your question? Ask it, and Daniel's team will set up a call or Zoom.
Who is Daniel Molinari?
Daniel I. Molinari (NMLS #1966441) is a branch manager at Cornerstone First Mortgage, LLC (NMLS #173855) and the lender behind DanLends Mortgage & Commercial Lending.
He came to lending after a corporate career that ended as VP of Operations, North America. He's known for teaching borrowers how mortgages work before he recommends one.
What is DanLends Mortgage & Commercial Lending?
DanLends Mortgage & Commercial Lending, Team of Cornerstone First Mortgage, is Daniel Molinari's education-first residential and commercial lending practice.
All loans are originated by Cornerstone First Mortgage, LLC, NMLS #173855, an Equal Housing Lender.
Where can DanLends help me buy or refinance?
Daniel is personally licensed in New Jersey, Florida, Pennsylvania and California. Cornerstone First Mortgage, LLC lends in many more states, and if your home is somewhere else, Daniel's team can connect you with a licensed Cornerstone loan officer there.
See where Cornerstone lends. You can meet Daniel by Zoom, by phone, or in person at the Clark, New Jersey office.
Do I need a big down payment to buy a house?
Not necessarily. Many people assume a large down payment is always required. Down payment requirements vary by program, and low down payment options may be available for eligible borrowers.
Some down payment assistance programs exist too. Some require repayment or have income limits or occupancy requirements. Daniel will show you which programs may fit your situation.
What's the difference between pre-qualified and pre-approved?
A pre-qualification is an estimate based on information you provide. A pre-approval is issued after the lender reviews your documents.
An AUS approval with conditions comes later, from the automated underwriting system, and an underwriter then clears each condition. Daniel will tell you exactly which letter you're holding.
Can I get pre-qualified the same day?
Often, yes. Because a pre-qualification is based on information you provide, Daniel can frequently turn one around the same day you talk.
A pre-qualification is an estimate based on information you provide. It is not a loan approval or a commitment to lend. Eligibility depends on borrower, property, and program requirements.
What happens when I start an application?
You create a secure account with Cornerstone First Mortgage, LLC (NMLS #173855) and share information about your income, assets and the home you want. Your credit may be reviewed as part of the application, with your authorization.
Starting an application is not a loan approval or a commitment to lend. If you'd rather talk first, contact Daniel's team with your questions before you apply.
Does DanLends offer commercial real estate loans?
Yes. Commercial and business-purpose financing options may be available through Cornerstone First Mortgage, LLC and its lending partners.
That can include multifamily, mixed-use, owner-occupied business property, investor portfolios and construction or bridge financing. Availability, terms and eligibility vary by property, borrower, program and state.
I'm self-employed or an investor. Do I have options?
Alternative documentation options may be available, including bank statement, asset depletion and DSCR programs.
Program eligibility depends on borrower, property, income, credit and investor guidelines. Daniel will walk you through which documentation path fits.
Should I talk to a lender before a real estate agent?
Daniel's advice is to start educated, whoever you start with. Knowing your number before you tour homes helps you, your agent and the seller.
If you already have an agent and a lender, you can still ask for a second opinion on the numbers in front of you.
Why doesn't Daniel advertise interest rates?
Rates change daily, sometimes several times a day. Two borrowers on the same program can get different rates based on their own details.
An advertised rate may reflect discount points paid upfront. Daniel would rather review your actual scenario and show you the APR and costs that apply to you. Rate options change frequently, so contact Daniel to review current options.
How do I get started?
Start your secure application online with the Start Your Application button. If you'd like to talk first, use the Questions first? button, the Call Dan button, or the contact page.
You'll be asked a few questions about your timeline and goals, and Daniel's team will set up a call or Zoom at a time that works for you, including evenings by request.
Loan program questions
Home loan program questions, by program.
Fixed-Rate Mortgage questions
Does my payment ever change on a fixed-rate mortgage?
The principal and interest portion does not change. If your property taxes and homeowners insurance are paid through an escrow account, the total monthly payment can change when those costs change.
If rates go down later, am I stuck?
On a fixed-rate loan your rate is locked in. If rates fall later and you qualify, refinancing may be an option. It depends on market conditions, your eligibility, and the costs involved, and refinancing can increase total finance charges over the life of the loan.
Adjustable-Rate Mortgage (ARM) questions
How much can an ARM payment go up?
It depends on the loan's caps, which limit how much the rate can change at each adjustment and over the life of the loan. Daniel will show you the caps on your specific loan and what the payment could be at each step.
Is an ARM riskier than a fixed-rate loan?
It carries more interest rate risk, because the rate can rise after the initial period. Whether that risk fits you depends on how long you plan to keep the loan and how much room your budget has.
FHA Loans questions
Is FHA only for first-time buyers?
No. FHA loans are available to first-time and repeat buyers, as long as the home will be your primary residence and you meet program guidelines.
Can I use gift money for an FHA down payment?
Gift funds from an eligible donor can often be used toward the down payment, with documentation. Daniel will tell you exactly what paperwork the gift needs.
VA Loans questions
Can I use my VA loan benefit more than once?
Often, yes. VA entitlement can be restored or used again in many situations. Daniel will review your Certificate of Eligibility and explain what's available to you.
Is the VA the lender?
No. VA loans are made by private lenders such as Cornerstone First Mortgage and guaranteed by the Department of Veterans Affairs.
USDA Loans questions
How do I know if a home is in a USDA-eligible area?
USDA publishes eligibility maps by address. Send Daniel the address and he'll check it, along with the income limit for that county.
Is USDA only for farms?
No. USDA home loans are for primary residences in eligible areas, which include many small towns and suburban communities.
Jumbo Loans questions
What makes a loan a jumbo loan?
A loan is considered jumbo when the amount is above the conforming loan limit for the county where the home is located. Those limits are set each year and vary by area.
Are jumbo loans harder to get?
They usually come with stricter credit, down payment and reserve requirements, and a closer look at your documentation. Daniel will tell you up front what underwriting will need.
Renovation & Rehab Loans questions
How are renovation funds paid out?
Funds are typically held in an account and released in stages, called draws, as each phase of the work is completed and inspected.
Can I do the work myself?
Most programs require licensed contractors. Daniel will explain the rules for the specific program that fits your project.
Down Payment Assistance (DPA) questions
Do I have to pay down payment assistance back?
It depends on the program. Some assistance is a grant, some is a forgivable second loan, and some must be repaid, especially if you sell or refinance within a set period. Daniel will show you the terms before you commit.
Which assistance programs can I use?
It depends on your state, county, income and the home. Programs available through Cornerstone include Chenoa Fund, Florida Housing and GSFA. Daniel will check which ones fit your situation.
Non-QM Loans questions
Is a non-QM loan a "no doc" loan?
No. Non-QM loans use alternative documentation, such as bank statements or assets, instead of the standard set. You still document your ability to repay.
What is a DSCR loan?
A DSCR (debt service coverage ratio) loan is an investment property loan that looks at the property's rental income compared with its payment. It is subject to program requirements.
Refinance questions
How do I know if refinancing is worth it?
Compare the total costs of the new loan with what you'd pay by keeping your current one, and how long you plan to stay. Daniel walks through that math with you, and he'll tell you if the answer is to leave your loan alone.
Can I shorten my loan term with a refinance?
Often, yes. A shorter term usually means a higher monthly payment and less total interest. Daniel will show you both sides.
Cash-Out Refinance questions
How much cash can I take out?
It depends on your home's appraised value, how much you owe, and the program's limits. Daniel will estimate the range for your situation.
Is it smart to pay off credit cards with a cash-out refinance?
It can simplify payments, but it moves unsecured debt onto your home and stretches it over a longer term. Daniel will show you the total cost both ways before you decide.
Commercial lending questions
Commercial real estate loan questions.
What types of commercial property can be financed?
Options may be available for multifamily buildings with five or more units, mixed-use properties, owner-occupied business property, investor portfolios, and construction, land and bridge projects. Availability depends on the property, borrower, program and state.
How is a commercial loan different from a home loan?
Commercial and business-purpose loans are often underwritten on how the property performs, such as its rental income and expenses, along with the borrower's experience and finances. Terms, documentation and requirements can differ significantly from a residential mortgage.
Who provides the commercial financing?
Commercial and business-purpose financing may be offered by Cornerstone First Mortgage, LLC or through its network of bank and investor lending partners, depending on the property and program. Daniel explains who the lender is and how the loan is structured before you apply.
What should I have ready to talk about a commercial deal?
A short description of the property and your plans, any rent roll or operating numbers you have, your timeline, and your goals for the financing. Daniel uses that to explain which options may fit.
Ready when you are
Your mortgage starts here.
Ready to take the next step? Start your secure application. Not sure which program fits? Contact Daniel's team and he'll walk through your options in plain English.
Your secure application is with Cornerstone First Mortgage, LLC (NMLS #173855). Starting an application is not a loan approval or a commitment to lend.