Landmark Financial Group LLC

What is the difference between a mortgage company and a bank?
A mortgage company has the distinct advantage over a bank in many ways. A good mortgage company offers many more loan products, rates and point options than a bank. A mortgage company has much greater flexibility with respect to the types of loans you can obtain, the structure of a loan and greater creativity with “out of the ordinary” circumstances.

Why should I use a mortgage company? What’s the advantage for me?
A mortgage company’s primary focus is mortgages. A bank offers mortgages as a complement to normal banking services. A good mortgage company can access several banks to obtain the best rate and terms for the buyer.

Are all mortgage companies the same and do they have the same rates?
Mortgage companies are not the same since their rates and terms differ depending on the banks they are able to access. A good mortgage company is able to offer the best possible rates and terms to the buyer.

How much are closing costs?
Closing costs can be defined in many ways. The total costs associated with closing your mortgage can vary greatly. The two biggest factors are directly related to whether or not points are involved, and the tax escrow established at the time of closing.

Should I pay points or go with zero points?
A rule of thumb to keep in mind is that closing costs will range between 2-2% (of the loan amount) without points, and 5-6% with points.

What is Private Mortgage Insurance?
Private mortgage insurance is an insurance policy that is obtained by a lender to insure against default of a mortgage. If your down payment is less than 20% of the sales price, you are typically required to have mortgage insurance associated with your mortgage. Mortgage insurance is paid by you and protects the lender. It is not an insurance policy for your protection.

When does it make sense for me to refinance? Does the rate have to be 2% or lower?
The best way to determine if it makes sense for you to refinance is to fill out the Prequalify On-Line form. By entering your current mortgage payment, your outstanding mortgage amount, the term of your new mortgage, and the interest rate of your new mortgage, you will get a calculation of your new monthly payment and the number of months you will need to stay in your new home to make up the costs associated with refinancing.

What’s the difference between a pre-qualification and a pre-approval?
A mortgage pre-qualification is simply a cursory review of your income, assets, liabilities and credit history with a qualified mortgage professional. A mortgage pre-approval is when you complete a formal mortgage application prior to finding a home, and a lender approves you for a pre-determined mortgage amount. The pre-approval will typically come with conditions that must be met prior to closing the loan; i.e. appraisal of the property and a fully executed sales contract.