What are certified mortgage planners?
A certified mortgage planner is a new term used in the mortgage industry to name those who help borrowers make mortgage decisions that fit in with their short-term and long-term financial goals.
The term arose due to criticism from the mortgage banking industry that no one was representing the customers’ interests.
Aims of a Certified Mortgage Planner
A certified mortgage planner is trained and certified specifically to help people achieve their mortgage financing goals.
A certified mortgage planner can help borrowers more personally. He is trained through education and certified after several written and oral examinations.
Ensure your mortgage broker is licensed
Although certain mortgage broker licensing requirements are required, non-compliance is more common than you might think.
In addition to the increase in unconventional mortgage products, this problem has caused some mortgage brokers to take advantage of consumers who rely on their expertise and capabilities.
Giving the mortgage industry a positive light
The need to create a certification that would combat the negative effects of the mortgage industry makes the terms and services offered by a certified mortgage planner emerge as a new concept in the real estate services industry.
The term mortgage planner was first used by NAMP (National Association of Mortgage Professionals) to differentiate between the new mortgage origination approach and the services a real estate agent provided.
According to mortgage planning advocates, they object that mortgage brokers have no fiduciary duty to the borrower and are essentially independent contractors.
Responsibilities are less clearly defined than other mortgage brokerage occupations, such as financial advisors and real estate agents.
How Can Certified Mortgage Planners Help You?
Some real estate brokers created the term “certified mortgage planners” to meet consumer demand for advisory services in this industry.
Mortgage procedures are very difficult for some consumers to understand.
So many choose to hire a person to guide them through acquiring a mortgage. Certified mortgage planners aim to educate consumers on mortgage lending issues, help them find the best option, and structure the most convenient payment strategy.
What Tasks Do Certified Mortgage Planners Perform?
Certified mortgage planners do not work alone. They partner with other professionals in the financial industry, such as certified financial planners, to ensure that consumer home financing plans align with current market trends.
The result of getting help from a mortgage planner is a mortgage plan designed to optimize the equity in the property while paying off the debt smartly. This is likely to be in the form of a fully amortized loan.
They can also help you to refinance your mortgage if that is a direction that you want to go in.
Training for Certified Mortgage Planners
Certified Mortgage Planners must undergo structured training and pass a series of tests to become certified by private mortgage planning institutions.
In turn, they also receive training in the mortgage banking and property finance markets and the methods and professional ethics needed to advise people on mortgage issues.
Why is it Important to Hire a Certified Mortgage Planner?
It is recommended that individuals seeking reliable advice on planning their mortgage financial goals seek the services of a certified mortgage planner.
Miscalculations can hurt a consumer’s long-term financial outlook. That’s why mortgage planning advocates recommend working hand-in-hand with financial planners.
There is more to a mortgage than just price.
If mortgage brokers offer only the price of a property to indicate which mortgage to take, they have no other benefit. Remember that price is not an indicator of quality.
The goal of the certified mortgage planner is to provide the consumer with the best combination of rates, fees, and services.
Reasons to hire a certified mortgage planner.
Here are the reasons why hiring the services of a certified mortgage planner is a great option for buyers:
- Certified mortgage planners provide professionalism and bring trust to the mortgage process.
- Certified mortgage planners will ask the right questions to learn about buyers’ financial goals and offer them the best financing plan.
- Certified mortgage planners offer in-depth research with supporting documentation to help buyers make sound decisions regarding their financial health.
They provide valuable information such as gift taxes, IRS implications of your financing decisions, long and short-term benefits, and any risks involved.
This allows you to have a bigger picture of what can happen so you can make the best decisions in an intelligent and informed manner. - The primary goal of certified mortgage planners is to use their skills to help consumers compare loan options effectively.
They also provide the information needed to consider the consumer’s current financial situation and long and short-term financial goals and make an informed, unbiased decision about the mortgage. - And finally, they help the borrower make smarter decisions regarding debt cash flow and real estate investments.
Real estate brokers heavily criticize the term certified mortgage planner because they feel that “sometimes people just want a mortgage and then to be left alone.”
This is not generally entirely true. Consumers are not just looking for a mortgage. Buyers are looking for someone to help them facilitate the processes and achieve their financial and mortgage goals.
And above all, they are looking for a professional and ethical person to guide them when managing their finances. This is the main reason the role was created.
National Finance Standards
There are few national standards for fiduciary loyalties.
In theory, agencies should have a certified mortgage planner, but that is not always the case. Instead, certified mortgage planners obtain certification independently at private institutions, albeit inconsistently.
This has led to some consumer confusion in differentiating between a certified mortgage planner and a traditional mortgage agent.
Certified mortgage planners use various tools and the knowledge gained in training to create a mortgage plan for clients.
With the help of advanced software, they compare mortgage products and credit scoring services to plan the best way to assist their clients in managing their debt and create alternative options for the client and the mortgage planner to further their financial goals.