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If you are in the market for a new home, chances are you are in the market for a mortgage as well. This means you’ll need someone to help you set one up and then apply for the right mortgage. There are many different options when you apply for your mortgage, from interest-only mortgages to ARMs to fixed-rate mortgages, so you need to choose this professional carefully. You can either choose to work with a loan officer or you can choose to work with a certified mortgage planning specialist. To make the right decision, you first need to understand the differences between these two professionals.
A loan officer usually works for the financial institution offering the mortgage. To become a loan officer, a person must first earn a bachelor’s degree in finance or a similar field. After finishing college, a loan officer may find work at a bank in an entry-level position to learn the industry, but this is not always necessary for the job.
A loan officer’s job is to find and recruit customers who are in need of mortgage or other loans and then assist them in successfully applying for these loans. This often translates into a sales role, as the loan officer attempts to get the borrower to sign up for a loan with a particular lender. Loan officers will work with real estate agents to acquire their clients. The officer will work carefully to build relationships with these agents so that the agents will recommend the officer’s mortgage company to their customers.
Sometimes the loan officer will try to help you learn about mortgage options to decide which one is the best fit, but often the only role of the loan officer is to help you complete the paperwork required for the mortgage. To do. After a customer applies for a loan, a loan officer will study the application to determine whether the applicant qualifies for the credit. Then the officer and his/her supervisor will decide whether to give the loan or not. If the loan is granted, the loan officer will complete the process at closing, when the repayment schedule is agreed upon and signed by the customer.
A certified mortgage planning specialist (CMPS) fills a similar role, but with one key difference. While they will help you fill out the paperwork, decide if you qualify, and create your repayment plan just like a loan officer, the title of “Certified Mortgage Planning Specialist” is only awarded to those who have completed their Beyond have completed a rigorous academic requirement Bachelor’s degree in finance or economics. Also, these professionals must pass a comprehensive exam to obtain CMPS certification.
So how does this difference affect you? First of all, these are specialists in the professional field. Not only does he have a background in finance, but he has been extensively educated about mortgages and how they affect consumers. He has over 400 hours of in-depth education on the subject of mortgage planning. To obtain CMPS certification, a mortgage specialist must prove that they have a deep understanding of the five core skills taught by the certification curriculum.
The first skill these professionals display is the ability to analyze the financial market and its effect on interest rates. This means that these professionals are able to look at the current market trends and analyze what is going to happen with the interest rate. This can be important if you are applying for a mortgage, as they will be able to predict whether interest rates are going to increase, thus allowing you to lock in a lower rate early in the application process. Of course, no one can completely predict what will happen in the country’s financial market, but this education is helpful in guiding you towards making the right mortgage decisions.
Another skill that a certified mortgage planning specialist must have is cash flow and debt analysis. These professionals will look at your current income (cash flow) and analyze how much debt you can actually handle. This prevents you from borrowing more money than you would realistically be able to repay. Furthermore, by carefully structuring your mortgage, a CMPS can help you bring more cash back into your budget, while building equity in your home.
The third skill these individuals must prove to be adept at is providing real estate equity management advice. A CMPS will be able to guide you through the process of building equity in your biggest, most important investment – your home. This leads to the fourth skill set, which is real estate investment planning. A CMPS will be able to help you plan the best way to use your home and your mortgage as a long-term investment. Also, a CMPS will be able to provide you with a plan to get out of your biggest debt as quickly as possible, using it as an investment rather than a drain on your budget. This professional will also be able to help you plan the best time to pay off your mortgage based on your individual situation.
Finally, in order to be a certified CMPS, a mortgage professional must prove competent when it comes to mortgages and real estate taxes. Again, this skill allows this person to be able to advise you properly when it comes to the taxes you pay on your home. With these five skills, CMPS professionals can help you maximize the amount of cash flow after you buy your home by structuring your mortgage in the most favorable way.
Are you considering investing in real estate? Then a certified mortgage planning specialist is the advisor you need. With the expertise these individuals have in real estate taxes and market trends, they will be able to advise you on the best places to buy investment properties and how to turn them quickly for profit. They also know which mortgage traps to avoid when you’re investing in real estate.
So which is the better option, a loan officer or a certified mortgage planning specialist? Both of these professionals will be able to get you the mortgage you need to buy your new home. However, if you want to make sure you get the right mortgage for your unique needs, and if you want to build a relationship with an industry professional who can advise you on all the steps you should take with your mortgage, Then you might want to consider a certified mortgage planning specialist.
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