Lately I have been asked the question over and over, "What is a Mortgage Planner Stetson and why should I use you (a mortgage planner) for my next Mortgage transaction." To answer that question for every one who is asking I have written the following post.
What to Look for In a Mortgage Planner
By Stetson Lowe
Nowadays, it seems as though there are almost as many types of people offering home loans as there are home loans themselves! So before it comes to choosing between different home loans, you need to choose between different loan providers.
That being the case, here are a few considerations for what to look for in a mortgage planner. These relate to whether they are really a mortgage planner or just a broker, what services they offer, what loans they can source, their level of responsiveness, and their fees.
The first thing to take note of is whether a given professional is a mortgage planner or a mortgage broker. Mortgage brokers focus on matching people with loans. While they aim to recommend the most appropriate loan for someone, they don't really consider the “big picture”. Mortgage planners, on the other hand, consider a borrower's home loan in the context of their overall financial plans. On that basis, a mortgage planner will consider your current situation and aims, as well as your future likely circumstances and goals, in order to select and assist in structuring the most appropriate loan for you.
As a practical matter, you'll want a mortgage planner who can source the types of loans that are likely to suit you. If you have general needs, then someone with access to a broad range of loan products may be suitable. If your needs are very specific – for instance you are self-employed and may not qualify for the typical home loan – someone who focuses on sourcing loans for people like you is likely to be better.
You should also seek to work with a mortgage planner who is responsive and accessible. Put it this way, if they're not there to answer your questions or assist with matters that are worrying you... they probably won't be of much use to you!
Equally, you want someone who will provide guidance and explain everything to you in plain English. Buying a home can be challenging, especially as you're unlikely to understand all of the jargon and complexities associated with real estate and banking. Therefore, it's a good idea to find a planner who will take the time to explain these things to you. Buying a home is one of the biggest decisions you will make in your life and you need to be clear on the commitment you are making.
A good mortgage planner should not require you to pay any unusual fees. Most planners will typically charge a commission (usually a percentage of the value of the loan) and may also charge extra fees for conducting an appraisal of the home you want to buy. They will also pass on other costs such as the closing costs and a down payment for the home.
That said, it's not generally wise to simply go with the person offering the lowest fees. They may not provide the level or range of services you need... which, long term, may end up costing you far more than the slightly higher fee charged by an expert mortgage planner.
To sum up, when looking for a good mortgage planner keep in mind these factors: are they really a planner, or just a broker? Will they source the kind of loan you need? Are they open and responsive? And are their fees appropriate for what they're offering?
I hope that helps answer the question What is a Mortgage Planner?
The Mortgage Insider - Stetson Lowe
