If you’re looking for a new home on the market, chances are you’re also looking for a mortgage. That means you’ll need to have someone help you create and then apply for the perfect mortgage. There are many different options when applying for your mortgage, from interest-only mortgages to ARMs and fixed-rate mortgages, so choose this professional carefully. You may choose to work with a loan officer or certified mortgage planning specialist. To make the right decision, you must first understand the differences between these two professionals.
A loan officer usually works for a financial institution that offers mortgages. To become a loan officer, a person must first have earned a bachelor’s degree in finance or another similar field. After finishing college, a loan officer may have found a job at a bank in an entry-level position to learn the industry, but this is not always a requirement for the job.
The loan officer’s job is to find and recruit clients who need mortgages or other loans and then help them successfully apply for these loans. This often becomes a sales function, as the loan officer tries to get the borrower to sign a loan with a particular lender. Loan officers will work with real estate agents to attract 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 clients.
Sometimes loan officers will try to help you learn about the available mortgage options to decide which one is best for you, but often the only role the loan officer has is to help you complete the necessary mortgage paperwork. Once a client has applied for a loan, the loan officer will review the application to determine whether or not the applicant is creditworthy. Then, the officer and his supervisors will decide whether or not to grant the loan. If the loan is granted, the loan officer will complete the process at closing, when the client agrees and signs the repayment schedule.
A Certified Mortgage Planning Specialist (CMPS) serves a similar role, but with one main difference. While they will help you fill out paperwork, decide if you are qualified, and set up your payment plan as a loan officer, the title of “Certified Mortgage Planning Specialist” is only awarded to those who have completed a rigorous educational requirement beyond your bachelor’s degree in finance or economics. Additionally, these professionals must pass a detailed exam to become CMPS certified.
So how does this difference affect you? First of all, these professionals are subject matter experts. They not only have a background in finance, but have also received extensive education on mortgages and how they affect consumers. They have had over 400 hours of intense education on the subject of mortgage planning. To achieve CMPS certification, a mortgage specialist must have demonstrated that she has a thorough understanding of the five basic skills taught in the certification curriculum.
The first skill that these professionals must exhibit is the ability to analyze the financial market and its effect on the interest rate. This means that these professionals can look at current market trends and analyze what is going to happen to the interest rate. This can be critical if you’re applying for a mortgage, because they’ll be able to anticipate if the interest rate is going to go up, allowing you to lock in a lower rate early in the application process. Of course, no one can fully predict what will happen in the nation’s financial market, but this education is helpful in guiding you toward the right mortgage decisions.
The second skill a Certified Mortgage Planning Specialist should have is cash flow and debt analysis. These professionals will look at your existing income (cash flow) and analyze how much debt you can actually handle. This prevents you from borrowing more money than you can actually repay. Plus, by carefully structuring your mortgage, a CMPS can help you put more cash back into your budget while building value in your home.
The third skill in which these individuals must demonstrate expertise is real estate wealth management advice. A CMPS will be able to guide you through the process of building equity in your largest and most important investment: your home. That 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 mortgage as a long-term investment. Also, a CMPS will be able to provide you with a plan to get out of your largest 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 your mortgage based on your individual situation.
Finally, to be a certified CMPS, a mortgage professional must demonstrate competency when it comes to real estate and mortgage taxes. Again, this ability allows this person to properly advise you regarding the taxes he will pay on your home. With these five skills, CMPS professionals can help you increase the amount of cash flow he has after buying 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 counselor you need. With their expertise 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 around quickly for a profit. They also know what mortgage pitfalls to avoid when investing in real estate.
So which is a better option, a loan officer or a certified mortgage planning specialist? Both professionals will be able to offer you a mortgage to buy your new home. However, if you want to make sure you get the perfect 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 need to take with your mortgage, then you may want to consider a certified specialist. in mortgage planning.