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Mortgage Planning Process
The mortgage planning process
is different than the typical "shopping for a
mortgage" experience. Although it is more
comprehensive, it is also fast and easy with
closing averaging one to two weeks*. The mortgage planning
relationship is not about you:
- Wasting your valuable time
trying to save $5/month by comparing rates, fees
and closing costs among different lenders.
- Wasting your valuable time
trying to baby-sit the mortgage company you've
reluctantly chosen to work with.
- Being promised one thing
and then getting something different at closing.
- Being "sold" on one
mortgage product over another.
The mortgage planning
relationship is about you:
- Receiving valuable
financial advice and guidance that can literally
save you hundreds of thousands of dollars.
- Trusting a professional
who is committed, qualified and equipped to
deliver what they promise.
- Experiencing a "concierge"
level of service when you are in the market to
buy a home, refinance your mortgage or make cash
flow changes to enhance your lifestyle.
- Implementing a defined
financial plan of action in helping you achieve
your life goals and dreams.
- Maintaining an ongoing
high trust relationship with a team of financial
advisors who can help you make necessary changes
in your debt, cash flow and home equity planning
strategies.
This is a relationship, not just a transaction.
As such, it requires a defined system of
accountability in order to work effectively. The
Mortgage Planning Process consists of the following
five steps:
- Establishing and
defining the client-planner relationship.
- Mortgage Planner
Should:
- Ask you for
information about your financial
situation and your time frame for
results and success.
-
Gather all the
necessary documents before giving you
the advice you need.
- Clearly explain or
document the services they will provide
to you.
- Explain how they
will be paid and by whom. Unless you are
willing to pay a flat fee for mortgage
and real estate equity advice, mortgage
planners are typically compensated
through a commission structure set up
with the lenders they work with.
- You Should:
- Clearly explain
how financial decisions are made in your
household and include all the key
decision makers in consultations with
your mortgage planner.
- Be prepared to
share personal and financial information
with your mortgage planner in order for
them to be able to advise you on how
best to achieve your goals.
- Analyzing and
evaluating your financial status.
- The mortgage planner
should analyze your information to assess
your current situation and determine what
you must do to meet your goals. Depending on
what services you have asked for, this could
include analyzing your credit situation,
real estate equity, debt situation and cash
flow.
- Developing and
presenting mortgage planning recommendations
and/or alternatives.
- The mortgage planner
should offer mortgage planning
recommendations that address your goals
based on the information you provide. The
mortgage planner should go over the
recommendations with you to help you
understand them so that you can make
informed decisions. The mortgage planner
should also listen to your concerns and
revise the recommendations as appropriate.
- Implementing the
mortgage planning recommendations.
- You and the planner
should agree on how the recommendations will
be carried out. The mortgage planner may
serve as your "coach," coordinating the
whole process with you and other
professionals such as CPAs, CFP
professionals, attorneys, Realtors,
builders, insurance professionals and other
qualified advisors.
- We will do a tri
merged credit report on the borrower(s) as
part of the loan selection and qualification
process.
- We will schedule an
appraisal for the mortgaged property.
- You sign the loan
documents and provide us with all required
documentation in a timely manner.
- We process the loan
and schedule your closing.
- You close on your
mortgage.
- Monitoring the mortgage
planning recommendations through a quarterly or
annual mortgage and equity management review.
- You and the mortgage
planner should agree on how you will both
monitor your progress toward achieving your
goals. During this review, your mortgage
planner can adjust their recommendations, if
needed, as your life changes. Most often,
this process involves periodic assessment
of:
- Your fluctuating
cash flow needs.
- Changing market
interest rates and mortgage strategies.
- Income and career
alterations.
- Family changes
including:
 Children's
financial needs.
Caring for
elderly parents.
How your real estate equity and investments are
performing from both a cash-flow and "internal rate
of return" perspective.
It's just
that simple.
* From
the time we receive all required and signed
documents. |
