What Are Certified Mortgage Planners and How Can They Help You?

Certified Mortgage Planners
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What is a certified mortgage planner?

A certified mortgage planner is a new term used in the mortgage industry to name mortgage originators who help borrowers integrate mortgage decisions and short-term and long-term financial goals.  The term arose due to criticism from the mortgage banking industry.

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 and is validated through education and certification after a conventional mortgage originator.

Ensure your mortgage broker is licensed

Although certain mortgage broker licensing requirements are required, non-compliance is more common than you might think. This problem, in addition to the increase in unconventional mortgage products, 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 term 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 approach to mortgage origination and the services provided by a real estate agent.

According to mortgage planning advocates, they object that mortgage brokers have no fiduciary duty to the borrower and are, in essence, independent contractors. Unlike other mortgage brokerage occupations such as financial advisors and real estate agents, responsibilities are less clearly defined.

How Can Certified Mortgage Planners Help You?

Some real estate brokers created the term “certified mortgage planners” to meet consumer demand for agency or advisory services in this industry. Mortgage procedures are very difficult for some consumers to understand.

So they always choose to hire a person to guide them through the process of acquiring a mortgaged property. Certified mortgage planners aim to educate consumers on mortgage lending issues, help them find the best option, and structure the most convenient payment strategy for them.

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 are in line 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 in a smart way.

They can also help you to refinance your mortgage if that is a direction that you want to go in.

Training for Mortgage Planners

Mortgage planners must undergo structured training and pass a series of tests to become certified by certified private mortgage planning institutions. In turn, they also receive training in the mortgage banking industry 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?

Mortgage House Loan Buy Real Estate Sell Property

It is recommended that individuals seeking reliable advice on planning their mortgage financial goals seek the services of a certified mortgage planner. Typically, consumers take advantage of home equity when they experience a personal financial crisis.

Unfortunately, this is not a good strategy, as 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 as a value, they have no other benefit to offer. 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 the best option for you and your buyers:

  • Certified mortgage planners provide professionalism and confidence to bring credibility to the mortgage process.
  • Certified mortgage planners will ask you the right questions to learn about your buyers’ financial goals so you can make the best decisions and offer the best financing plan for them.
  • Certified mortgage planners offer in-depth research with supporting documentation to help buyers make a good decision in favor of their financial health. They provide valuable information such as gift taxes, IRS implications of your financing decisions, long and short-term benefits, and the risks of your decisions. 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 desires, and from that, make a mortgage or housing decision. 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 entirely true. Consumers are not just looking for a mortgage; they are looking for a person 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 term was born.

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 originator.

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 use to further their client’s financial goals.

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