Ihab Salloum[ad_1]
If you find yourself in the market for a new home, chances are you’re also in need of a mortgage. So, it’s important to find the right professional to assist with creating and applying for the perfect mortgage. With various options available, such as interest-only mortgages, ARMs, and fixed-rate mortgages, you’ll want to choose your professional carefully. Two options to consider are working with a loan officer or a certified mortgage planning specialist. To make an informed decision, it’s important to understand the differences between these two professionals.
A loan officer typically works for a financial institution that offers mortgages. To become a loan officer, an individual must first earn a bachelor’s degree in finance or a similar field. While it’s not always necessary, some loan officers may gain industry experience by starting in an entry-level position at a bank after college.
A loan officer’s primary responsibility is to find and recruit customers who need mortgages or other loans and assist them in successfully applying for these loans. This often involves a sales role, as loan officers attempt to convince borrowers to sign up for a loan with a particular lender. Loan officers work closely with real estate agents to find customers. They build relationships with these agents so that the agents will recommend the loan officer’s mortgage company to their clients.
While loan officers may sometimes provide guidance on mortgage options, their main role is to help borrowers complete the necessary paperwork for their mortgage. Once an application is submitted, the loan officer reviews it to determine creditworthiness. Then, the loan officer and their supervisors decide whether to grant the loan. If approved, the loan officer completes the process at the closing, where the repayment schedule is agreed upon and signed by the borrower.
A certified mortgage planning specialist (CMPS) performs a similar role, but with one key difference. In addition to helping with paperwork, qualification assessments, and repayment plans like loan officers, CMPS professionals must meet stringent educational requirements beyond a bachelor’s degree in finance or economics. They must also pass a detailed examination to obtain CMPS certification.
So, how does this difference benefit you? CMPS professionals are experts in the field. They not only have a background in finance but have also received extensive education on mortgages and their impact on consumers. They have undergone over 400 hours of intensive mortgage planning education. To obtain CMPS certification, they must demonstrate a comprehensive understanding of the five core skills covered in the certification curriculum.
The first skill CMPS professionals must possess is the ability to analyze the financial market and its impact on interest rates. This means they can assess current market trends and anticipate interest rate changes. This is invaluable when applying for a mortgage, as they can help borrowers lock in a lower rate early on. While no one can predict the entire financial market, this education is beneficial in guiding borrowers towards informed mortgage decisions.
The second skill required for a certified mortgage planning specialist is cash flow and debt analysis. These professionals evaluate borrowers’ current income and determine the realistic amount of debt they can handle. This prevents borrowers from overborrowing and ensures their ability to repay. A CMPS can also structure the mortgage in a way that puts more cash back into the borrower’s budget while still building equity in their home.
The third skill CMPS professionals possess is real estate equity management advising. They guide borrowers through the process of building equity in their most important investment – their home. This leads to the fourth skill, which is real estate investment planning. CMPS professionals can help borrowers plan the optimal use of their home and mortgage as a long-term investment. They can also provide a strategy to efficiently pay off the mortgage based on individual circumstances.
Finally, CMPS professionals demonstrate competence in mortgage and real estate taxes. This skill allows them to provide accurate advice regarding the taxes borrowers will incur on their homes. With these five skills, CMPS professionals can help maximize borrowers’ cash flow by structuring their mortgages favorably.
Considering investing in real estate? A certified mortgage planning specialist is the advisor you need. With their expertise in real estate taxes and market trends, they can guide you on the best places to purchase investment properties and how to turn them around quickly for profit. They also know how to avoid mortgage pitfalls when investing in real estate.
So, which is the better choice – a loan officer or a certified mortgage planning specialist? Both professionals can help you secure a mortgage for your new home. However, if you want to ensure you obtain the perfect mortgage for your unique needs and build a long-term relationship with an industry professional who can advise you on every step of your mortgage journey, then considering a certified mortgage planning specialist is the way to go.
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